News Summary
The Fayette County Fiscal Court has postponed its vote on a proposed occupational tax increase following legal concerns raised by Kentucky’s Attorney General. The school board’s request to boost the tax from 0.5% to 0.75% aimed to bridge a $16 million budget shortfall but was deemed unlawful due to insufficient public notice. There will be a public hearing for community input on the tax proposal prior to the rescheduled vote on June 23.
Fayette County, Kentucky – The Fayette County Fiscal Court has canceled its planned vote on a proposed increase to the occupational tax due to legal concerns surrounding the process followed by the Fayette County Public School Board. This decision came on the heels of an opinion from Kentucky Attorney General Russell Coleman, which ruled that the school board’s earlier vote to request this increase was unlawful.
On May 27, the Fayette County Public School Board voted narrowly by a margin of 3-2 to seek authority from the fiscal court to raise the current occupational license tax from 0.5% to 0.75%. The increase is intended to help bridge a $16 million budget shortfall facing the school district. However, the Attorney General’s opinion indicated that the school board failed to provide the legally required public notice before convening on the tax proposal during its May meeting.
Following the Attorney General’s findings, Fayette County Judge-Executive Mary Diane McCord Hanna determined it was necessary to halt the fiscal court’s vote on the tax increase. This decision was made in consultation with Fayette County Attorney Angela Evans, who advised that moving forward without adherence to proper legal procedures would be inappropriate.
The proposed tax increase has drawn scrutiny from both community members and state lawmakers, with significant criticism directed at the school board’s transparency regarding the vote and decision-making process. Many residents claim that there was insufficient public notice related to the proposed tax hike, leading to concerns about community involvement in such a critical financial decision.
School officials have argued that without the additional revenue generated by the proposed tax increase, the district would face severe financial challenges jeopardizing educational services. They maintain that addressing the budget gap is vital for ensuring the ongoing stability of the district’s finances. If approved, the tax increase is projected to generate between $27 million to $32 million in additional revenue when fully implemented, with the existing occupational license tax expected to yield approximately $57 million for the upcoming fiscal year.
In light of these developments, the Fayette County Fiscal Court plans to schedule a second vote on the proposed tax increase for June 23. This meeting will also include a public hearing designed to solicit community input regarding the tax proposal. Fayette County Superintendent Demetrus Liggins has emphasized the district’s commitment to achieving student success and maintaining transparency, asserting adherence to legal requirements during this process.
Currently, the average monthly payment for workers in Fayette County stands at approximately $26. Should the tax increase be approved, this figure would rise to around $39, reflecting the increased financial obligation for local employees.
Further driving the scrutiny of the school board’s actions, Senator Amanda Mays Bledsoe sought the Attorney General’s opinion after receiving feedback from her constituents regarding the perceived lack of transparency in the school board’s decision-making process. The Attorney General’s ruling reinforces that the Fayette County Fiscal Court is not authorized to vote on tax increases that do not conform to legal procedures set forth.
As the community gears up for the upcoming public hearing, residents will have the opportunity to express their views and ask questions regarding the planned increase to the occupational tax, the budget issues it aims to address, and the importance of transparency in local government processes.
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Additional Resources
- Kentucky.com: Fayette County Tax Increase News
- Wikipedia: Fayette County, Kentucky
- Kentucky.com: Fayette County Updates
- Encyclopedia Britannica: Kentucky
- Kentucky.com: School Board Financial Challenges
- Google Search: Fayette County School Tax Increase
