News Summary
Kentucky Attorney General Russell Coleman announced that the Fayette County Public School Board’s attempt to raise occupational taxes is unlawful due to inadequate public notification. This follows a vote to increase the tax rate from 0.5% to 0.75%. Coleman emphasized the importance of transparency in government actions, asserting that officials must adhere to established rules. Despite this ruling, school district officials maintain the vote was legal and necessary to address a projected $16 million budget shortfall, highlighting ongoing tensions around public engagement in financial decisions.
Lexington, Kentucky – Kentucky Attorney General Russell Coleman has declared that the Fayette County Public School Board’s effort to increase occupational taxes is unlawful due to insufficient public notification. This ruling follows a recent vote by the school board that sought to raise the tax rate from 0.5% to 0.75%, which Coleman’s opinion found to be improper as it did not adhere to state law regarding necessary public notices and hearings.
The Fayette County Clerk, Susan Lamb, announced that the Fayette Fiscal Court would not proceed with the planned vote on the tax increase following Coleman’s advisory. While the proposed tax measure will not be voted on, the fiscal court will still convene to address other unrelated agenda items. Coleman’s opinion underlines the critical need for transparency and accountability to taxpayers, asserting that government officials must not bypass established regulations to impose tax increases.
Despite Coleman’s findings, Fayette school district officials argue that the vote was legal and essential to mitigate a projected $16 million budget shortfall. Fayette Superintendent Demetrus Liggins indicated that the board strongly disagrees with the Attorney General’s conclusion. Nonetheless, he stated that in an effort to respect the intent of Coleman’s opinion, a public comment period will be incorporated into the agenda for the board’s next meeting on June 23.
The current occupational license tax is projected to generate $57 million for the Fayette County school district in the upcoming fiscal year. Should the proposed increase be implemented fully, it is estimated to yield an additional $27 million to $32 million annually. Currently, the average worker in Fayette County pays $26 per month, which would rise to $39 per month under the proposed tax hike, increasing the average annual payment from $312 to $468.
The school board had previously voted 3-2 in favor of the tax increase at the May 27 meeting, which had raised concerns among community members regarding the adequacy of public notification given the contentious nature of the tax issue. Following this, Fayette County Attorney Angela Evans expressed her support for Coleman’s opinion and plans to advise the fiscal court to comply with the Attorney General’s advisory.
State Senator Amanda Mays Bledsoe had requested Coleman’s opinion in response to constituents’ concerns about the lack of public notification regarding the tax increase. Additionally, some parents, led by individuals such as Matthew Vied, are preparing to instigate a recall of the tax increase should it have passed. In light of the scrutiny surrounding the tax proposal, Kentucky Auditor Allison Ball has announced a special examination of Fayette County Public Schools to address public questions regarding the school board’s decision-making process.
Superintendent Liggins reaffirmed that the district’s focus remains on enhancing student achievement and meeting the educational expectations of the community. He has also acknowledged concerns about fiscal responsibility, especially following reports on expenditures including a $32,000 spending on ice cream treats for school staff that was mistakenly identified as taxpayer-funded. Liggins emphasized that the revenue generated from the proposed occupational license tax is critical for closing the existing budget gap, largely attributed to rising inflationary costs, diminishing federal support, and increasing demands on public education.
Moreover, the Fayette Fiscal Court has 10 days to respond and decide on potential actions regarding the tax increase in light of the Attorney General’s advisory. The school board aims to work towards restoring community trust after facing backlash over their approach to the tax decision-making process, underscoring the importance of public engagement in future financial matters.
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Additional Resources
- Kentucky.com: Fayette County Public School Board Tax Increase Controversy
- Wikipedia: Fayette County, Kentucky
- LEX18: Fayette County School Board Tax Request
- Google Search: Fayette County Public Schools
- Kentucky.com: Audit of Fayette County Schools Announced
- Encyclopedia Britannica: Public School
- Spectrum News: FCPS Tax Hike Coverage
- Google News: Fayette County School Budget
