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Tax Rates Transparency

Communication, transparency key to public support when setting rates

Kentucky School Advocate
September 2018

By Brenna R. Kelly
Staff writer

At public hearings before a vote on a tax rate, school board members could hear kudos or criticism. 

“There are always people who come and voice their opinions, just as many positive as negative,” said Kim Croley, board chairwoman of Corbin Independent, where for the last four years the board has taken the rate that will bring in the most revenue. 

What’s the best way for school boards to justify taking a rate that could lead to a tax increase? Jody Maggard, Perry County Schools' finance officer, has one answer: communication. 

“If you are asking somebody to give more, it’s only reasonable that you would explain to them why you need more and what you are planning to do with it,” said Maggard, who is also immediate past president of the Kentucky Association of School Business Officers (KASBO). 

Breckinridge County Schools Chief Financial Officer and KASBO Treasurer Michael Moreland agreed that communicating the need is important.

“Generally speaking, when somebody in the public hears tax increase, it just spurs negative attitudes to some people regardless of how you sell it,” he said, “but what we’ve found is we just try to be as transparent as possible.” 

The public doesn’t understand the intricacies of school finance, Maggard said. Even though education funding has been cut dramatically over the last several years, school districts are still the largest employers in many counties.

“A lot of people in their communities have this idea that the school systems have tons of money,” he said. “When I tell people we have a $55 million budget, they think, then why would you ever need a dollar more?” 

But the reality is the money goes out to operate the district as fast as it comes in, Maggard said.  

Croley said every year before the tax vote her Corbin Independent board lets constituents know how it plans to use the increased revenue.

“We put it out there,” she said. “We want to be as transparent as possible.”
 
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