News Summary
The Fayette County Public Schools board is proposing to raise the occupational license tax from 0.5% to 0.75% to help mitigate a projected $16 million budget deficit. This tax increase, aimed at generating additional revenue, follows a trend of reduced funding for essential services and previous cuts. The upcoming school board meeting has raised concerns regarding transparency and community input on the proposal. Discussions around the urgency of the tax increase and its implications for local education funding are ongoing among parents and stakeholders.
Lexington, KY – The Fayette County Public Schools board is set to propose an increase in the occupational license tax from 0.5% to 0.75% of wages and net profits to mitigate a projected $16 million budget deficit. Fayette Deputy Superintendent Houston Barber is scheduled to present the resolution at the school board’s regular monthly meeting on Tuesday, which will take place at 6:00 PM at the John D. Price Administrative Building.
The current occupational license tax is anticipated to generate about $57 million for the district in the upcoming fiscal year. The proposed increase reflects a need for additional revenue to address the budget shortfall amid reduced funding for essential services and classroom building. Earlier in May, the school board had already announced cuts of 20% across all department budgets.
This increase is significant as the school board typically depends on property taxes for funding, making this potential shift toward an occupational license tax a relatively rare and notable move. The board is allowed to raise property tax rates up to 4% without triggering a recall, given the rising property assessments in Fayette County.
The Fayette Public Schools tax collection office is expected to manage the administration of the new occupational license tax. Importantly, this tax will not apply to individuals residing outside of Fayette County. According to Fayette County Judge Executive Mary Diane Hanna, the resolution is likely to be discussed in a special meeting of the fiscal court.
Concerns regarding the transparency of the proposal have emerged as the resolution was made public just days prior to the school board meeting, raising questions about adequate public notification and opportunities for community input. This has led some board members and residents to worry about the rushed nature of the discussions. Parent Matthew Vied has characterized the proposed tax increase as a bold move that might trigger a recall effort if it passes.
Currently, the average Fayette County worker contributes about $26 monthly towards the occupational license tax, which would rise to approximately $39 per month if the proposed increase is approved. Compounding the matter, the Kentucky Revised Statutes (KRS) 160.603 requires formal notice for certain tax levies. However, the district asserts this law does not apply to the county-level tax under consideration.
This situation is unusual, as the Fayette County Fiscal Court typically refrains from voting on school funding issues. Unique circumstances have led to a Fayette County commissioner opting to recuse himself from the vote due to his employment with the school district. The fiscal court is slated to vote on the proposed resolution at 1:30 PM on June 5.
Parents and community members have voiced dissatisfaction regarding the communication process surrounding the tax increase. Board member Monica Mundy has expressed concern over not being able to review the draft of the budget and aims to pose questions during the upcoming meeting. Former school board chair Stephanie Spires has encouraged community involvement, advocating for transparency in discussions regarding the budget and proposed tax adjustments.
The Fayette County Public Schools board’s initiative highlights the district’s urgent need for funds to provide adequate educational services amidst budgetary constraints. The board’s actions, coupled with community responses, underline the broader implications of tax policy changes on local education funding and public sentiment.
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Additional Resources
- Fox 56 News
- Wikipedia: Fayette County, Kentucky
- WKYT
- Google Search: Fayette County Public Schools tax hike
- Kentucky.com
- Google Scholar: Fayette County Public Schools
- Lex18
- Encyclopedia Britannica: Public education funding
- Spectrum News 1
- Google News: Fayette County Public Schools funding
