Fayette County schools plan for $3.4M shortfall, propose about 67.5 position reductions and a $2.5M tax note authorization

Fayette County Public Schools officials recommended a set of measures to address a projected budget shortfall for FY2026–27, telling the Budget, Finance, Transportation, Operations & IT Committee on April 23 that the district faces roughly a $3.4 million shortfall and limited fund‑balance flexibility.

Superintendent Dr. McPherson said the district’s current fiscal picture reflects a combination of declining enrollment, rising insurance costs projected at about 10 percent, higher fuel expenses, deferred maintenance and withheld bond payments that reduce available operating revenue. He told the committee the district used $3,434,589 from fund balance in the current year and that, "without additional support from the county commission, the district cannot balance the budget." The committee voted to forward the proposed budget package to the full board for consideration.

To preserve cash flow during revenue timing gaps, Dr. McPherson asked the committee to forward authorization for a Tax Anticipation Note—similar to a line of credit—allowing borrowing of up…