Commerce Lexington Issues Statement on the FCPS Budget Shortfall Issue

Background:
Fayette County Public Schools (FCPS) is facing a projected $16 million shortfall in its proposed $813 million FY 2025–26 budget (less than 2% of the budget). To address the gap, the school board voted to increase the local Occupational License Tax (OLT) from 0.5% to 0.75% on people who live and work in Fayette County – generating over $30 million annually. However, following community concerns about transparency, public engagement, fiscal responsibility, and economic impact, FCPS leaders paused the implementation of the tax proposal and formed a budget solutions working group to review the budget, explore cost savings, and recommend solutions. Commerce Lexington representatives on the working group included Hunter Stout (Keeneland), Dr. Stephen Behnke (Lexington Clinic), and Rob Shear (SRC), along with other community leaders. The FCPS School Board is scheduled to revisit the budget issue on Monday, August 18.

Commerce Lexington Statement:
A thriving workforce and community require a strong public school system.

That’s why Commerce Lexington members have participated in the Budget Solutions Workgroup. We want to ensure that Fayette County students and educators have the resources they need for continued success.

Fayette County Public Schools – from Superintendent Demetrus Liggins to classroom teachers and support staff – provide students with a world-class education.

The results speak for themselves. In the last four years, FCPS students are recovering learning loss in reading at three times the national average and outpacing the national average in math recovery, graduation rates are steadily increasing, the number of students taking at least one college-level class has nearly tripled, and FCPS produces 32 percent of the state’s highest-performing students with only 6.5 percent of Kentucky’s total student enrollment.

By working together with the district and engaged community representatives, Commerce Lexington believes that a short-term solution for the next budget is achievable while maintaining the occupational license tax at its current amount.

​Reducing the contingency fund, while still keeping it at the legally required amount, will resolve the deficit and provide an additional cushion. In addition, cost-saving measures should be implemented.

We remain committed to rolling up our sleeves and working with FCPS to regain long-term, lasting structural balance in the budget through additional cost savings and efficiencies, new revenue generation derived from public-private partnerships and sponsorships, and aligning resources. 

On behalf of our 1,800 members who represent a substantial number of employees in Fayette County, we believe our community can solve this challenge in a way that maintains high standards for our students while not adding to the cost burdens of working families or creating barriers to economic development and job recruitment.

In this effort, we are – and will be – steadfast partners with our public schools, the most important asset we have to ensure a bright future for our community.