Harrison Co. votes to enact tax increase to boost revenue by 4 percent; superintendent says unfunded mandates means locals boards must find more revenue

Cynthiana Democrat, Sept. 7, 2017

School board opts for tax increase to generate 4% over last year’s revenue
By Lee Kendal

The Harrison County Board of Education voted unanimously to enact a 4 percent increase in property taxes for the 2017-18 school year at a special meeting on Friday afternoon, Sept. 1.

The tax increase is expected to put an additional $300,000 in the district’s coffers.

District financial officer Julie Asher clarified that this is not a flat 4 percent increase in taxes.

“The increase is designed to provide four percent more revenue than we received last year,” she said. “It is not a four percent increase on everyone’s property taxes.”

As an example, Asher said that a person who pays taxes on a $100,000 home should expect to see about a $15 per year increase in the portion of their taxes that goes to the board of education.

“Last year, taxes on that $100,000 home would have been $490. This year those taxes would be $505,” she said.

She also said that Harrison County ranks toward the bottom of the state, in regard to tax rates.

“Right now, Harrison County is 134th out of 173 school districts in the state, as far as tax rates are concerned,” Asher said. “That means almost every district in the state has a higher tax rate than we do.”

She went on to say that Harrison County has opted to take the same “4 percent” increase in seven of the previous 10 years. The other three years, the school board has chosen to go with the “compensating rate” which was the other option available.

The compensating rate option allows the board to set a rate that allows the same revenue that the board received the previous year.

Superintendent of Schools Andy Dotson, recommended that the board adopt the four percent increase.

“There are so many more unfunded mandates that are passed down to the local boards of education from the state that we must come up with more revenue,” he explained.

He explained that district obligations to employee retirement plans and transportation costs that are now solely the district’s responsibility, account for over $1 million in expenditures that didn’t exist when he first became superintendent in Harrison County.

“The state is passing more and more to the local districts and we have to do something to make ends meet,” he said.

Two citizens spoke to the board voicing their concerns about the tax increase.

“I love this school district and want nothing but the best for the school system,” said local businessman Avi Bear. “However, there needs to be something done to help small business owners like me.”

He explained that the tax increase on his real estate is not a big issue, but the increased cost to him on his tangible property to run his business, does cause a drain.

“I’m not sure what the answer is, but something needs to be done to help the small business owner,” he said.

Bear went on to say that many in the community believe that the salary structure in the district is “topheavy.”

“I know that a lot of people believe that salaries for administrators are too high,” Bear said. “Especially when compared with what other district employees earn and compared to what the median income in Harrison County is.”

Bear said the median income in Harrison County is $36,000.

He also said he thought the board exercised poor judgment in when Friday’s public hearing was held.

“It doesn’t look good when you decide to have this meeting on a Friday afternoon, leading into a holiday weekend,” he said. “It almost looks like you don’t want anyone to attend and voice their concerns.”

Asher explained to Bear that state law determines when public meetings can and cannot be held and that advertising in the local newspaper is a part of that law.

“Our local paper is a weekly that comes out on Thursdays, so that means we can only have this meeting on a Thursday or Friday,” she explained.

Allen Blankenship also addressed the board and explained that he moved to Harrison County from Eastern Kentucky 30 years ago, in order to provide a better education for his children.

“I have no complaints about the education that my children received at all,” he said. “But now those children are all out of the house and I am retired. I’m looking at this from the perspective of someone who is now living on a fixed income. When I was working, I didn’t think much about tax increases, but now, it hits home. Like I said, I’m not complaining at all, but we need to look at how these tax increases are affecting everyone in the county.”

After Bear and Blankenship spoke, each board member took turns giving reasons why they supported the “four percent” increase. To a person, the board cited “providing opportunities for the students” as its primary obligation.

“We don’t take this increase lightly, but we feel like it is necessary for the students in our school district,” said school board chairperson Kristy Carey. “I hate having to raise taxes, but this is really our only option.”

All four members of the board who were present, voted for the four percent increase in revenue. Board member Gary Dearborn was absent.