Proficient Reading:
Elementary: 28%
Middle: 27%
High: 27%
|
Distinguished Reading:
Elementary: 24%
Middle: 23%
High: 23%
|
Proficient Math:
Elementary: 29%
Middle: 26%
High: 21%
|
Distinguished Math:
Elementary: 17%
Middle: 17%
High: 17%
|
Occupational Licensure Tax Expansion
All school district funds become part of the district budget that your elected officials design and vote on. These funds would be allocated just the same – by the people we elect to govern Occupational Licensure Tax Expansion.
June 9 Update
Background & Details
Expansion of the occupational tax is a natural progression resulting from our city’s growing population. Kentucky law sets forth this mechanism for all counties as they grow. When a Kentucky county’s population exceeds 300,000 people, KRS 160.607 outlines the process for increasing the occupational licensure tax rate by 0.25%.
The projected increase on the current rate would generate $27 million to $32 million per year. Adoption of this new rate by the fiscal court would go into effect Jan. 1, 2026. Thus, the first rate increase of one-half of a fiscal year (Jan. 1-June 30, 2026) would provide an estimated $13.5 million to $16 million.
This modest increase will have minimal costs to citizens while having deep impacts on our children and the people who spend their days alongside them.
The average taxpayer is expected to pay an additional $13 per month – which means an additional $3.25 per week.
Executive Summary
- Kentucky law provides for all counties to levy an occupational license tax rate of .5%.
- For counties that exceed 300,000 inhabitants, that allowance increases to .75%.
- Fayette County exceeded 300,000 inhabitants during the pandemic in 2020.
- The city charter and state law allow the local board(s) of education within a county to vote to increase that tax rate from .5% to .75% when the population trigger of 300,000 inhabitants is met.
- As a procedural matter, the board of education resolution, once adopted, requires adoption of the subsequent increase by the fiscal court.
- The fiscal court’s role is purely procedural, and should not place any imposition upon the court, as its only role is to adopt, not to debate and “approve” or “disapprove.”
- FCPS in the past decided not to increase the licensure tax. However, the uncertainty in Washington D.C., unfunded mandates from Frankfort, and inflation combined with tariffs have left FCPS with no other choice.
Use of Funds
Fayette County Board of Education members have expressed their intent to use the additional funds to shore up several key areas of budget needs that remain unaddressed, including staff compensation, school safety gap funding, and cover for increased food costs without raising the price of school meals for students and families.
Specifically, this will allow us to provide a 1% raise to all staff. We know they deserve more and that this doesn’t even account for the inflationary impacts on their take-home pay. Still, it will help us make a small dent in that universal struggle for the staff who do so much for our children, our economy, and our future workforce day in and day out. Further, data consistently shows that staff raises benefit our overall economy.
In addition, this will help us continue to fund school safety efforts that cost more year over year than the safety nickel levied can cover in the absence of state funding.
FAQs
Q: Can’t FCPS make cuts to achieve these outcomes?
A: The FCPS administration and board have worked hard to cut personnel and other costs, totaling $8.9 million in actual reduction of expenditures at the district level while preserving high-quality services and resources for students and staff.
Q: What about cuts to the central office?
A: This budget cycle alone, FCPS has reduced positions at the John D. Price Administration Building through attrition and program realignment. We have implemented a hiring freeze on any new positions and carefully evaluate each position vacancy before rehiring.
Q: Is FCPS doing this to adapt to federal funding cuts?
A: The FCPS administration and board are carefully monitoring the impact of inflation, tariffs on common goods and services, and other market conditions, and anticipating additional actions.
To reach all the school board members, email feedback@fayette.kyschools.us