This report examines the desegregation of students, teachers, and administrators in the Fayette County (Kentucky) Public Schools for the 1986-87 school year. It is based on counts of students and professional personnel made in September 1986. Findings show that racial polarization is intensifying in the Fayette County schools. More blacks and fewer whites are attending the elementaries in the northern sector of the county. A large and growing number of whites--and more blacks--are attending the elementaries in the southern area of the county. The central-area elementaries continue to have the highest percentage of black students. The current district assignment policy is creating overcrowded conditions in almost all the southern elementaries and underutilization of capacity in almost all the northern and central elementaries. Portable classrooms are being used to maintain segregation and avoid cross-district busing. The report suggests that an alternative to building a new elementary school and to adding more portables to the southern elementaries is to reassign white students from the overcrowded and racially imbalanced southern elementaries. The report includes charts and statistics which trace changes in racial mixture in the county. Four appendices include the following information: (1) student enrollment by race in county schools; (2) administrators and teachers by race in county schools; (3) methodological notes; and (4) a bibliography of related publications. (PS)