Fayette County schools propose $28.1 million budget, plan roughly 67.5 position reductions to close $3.4 million gap

Fayette County Public Schools Superintendent Dr. Don McPherson presented a proposed Fiscal Year 2026–2027 budget at committee meetings on April 23, 2026, saying the district expects about $28.1 million in revenue and projected expenditures of roughly $32.7 million.

Dr. McPherson said the district is managing a current‑year gap driven in part by withheld bond payments from Fayette County, which he estimated will reduce annual revenue by about $1.2 million, and that the district drew approximately $3.43 million from its fund balance to balance the current year. He told committee members that the district “must reduce expenditures by approximately $3.4 million” to balance next year’s budget if additional revenue is not secured.

The proposed budget anticipates about $16 million in state funding and about $12 million from county funding; Dr. McPherson said the decrease in total revenue from the prior year is driven by declining student enrollment, which also reduces state allocations. Finance Director Arianna Elliott told the committee that year‑end accounting activity and manual data‑entry discrepancies affected some account balances and that roughly $170,000 in Transportation invoices from a prior fiscal year were paid during the current year, producing the largest single variance reported.

To achieve the $3.4 million savings target, the district proposed multiple operational and personnel changes across departments. The reductions described in committee materials include staffing changes that together total approximately 67.5 positions, with examples including reducing nursing positions from seven to five, counselors from eight to five, security staff from 13 to 10, custodial staff from 26 to 18, and several instructional and central‑office support position reductions. Dr. McPherson also proposed restructuring the Jefferson Innovative Learning Center (JILC) services and eliminating the JILC director position and recommended transportation changes such as route restructuring and a unified bell schedule.

Dr. McPherson emphasized the district’s continued commitment to student opportunities, noting partnerships with Tennessee College of Applied Technology Stanton and the University of Tennessee at Martin that may expand dual‑credit options. He also said the district still plans to implement a state‑required employee salary increase, estimated at a 6 percent cost‑of‑living adjustment, and that balancing the budget will likely require additional funding from the Fayette County Commission.

Committee members forwarded the proposed budget to the full Board for approval by a 3–0 vote. The committee did not adopt final reductions; rather, it recommended the proposal be considered at the May Board meeting. The superintendent and finance staff said some payments tied to federal reimbursements (stipends and career ladder payments) are delayed and expected to be issued in May once funds are received.

What’s next: The proposed FY 2026–2027 budget was forwarded to the full Board; any personnel reductions, budget amendments, or requests for additional county funding would be finalized there and require Board approval.