County school board approves tax hike to increase revenue by 4 percent
By JIM BROOKS
Nelson County Gazette / WBRT Radio
Board member Diane Berry discusses her thoughts on school taxes and education during Thursday’s meeting at the district’s Central Office.
Thursday, Sept. 4, 2014, 10 p.m. — After a public hearing Thursday evening, the Nelson County Board of Education approved raising the county school real estate tax rate from 69 to 71.4 cents per $100 value.
The rate increase will produce 4 percent more revenue over the 2013 tax rate — which will translate to $543,528 in additional revenue. The tax increase means that a person who owns a home valued at $100,000 will play $24 of additional county school tax this year.
Superintendent Anthony Orr offered a presentation to the board that offered charts and graphs that explained the need for the additional revenue.
Orr noted that salaries consume more than 81 percent of the district’s budget. With cuts in education funding from the state, pay raises mandated by the General Assembly, and mandated teacher retirement contribution increases, the district is under tremendous pressure to take the 4 percent revenue increase each year.
The district’s annual Support Education Excellence in Kentucky (SEEK) funding has dropped from $17.6 million in 2009 to a projected $15.4 million for the 2014-15 school year, Orr told the board.
Frank Hall, chairman of the Nelson County Board of Education, discusses the need for additional revenue and the strain higher taxes put on families and seniors who are already struggling to financially.
One chart illustrated the various revenue increase options, from 1 to 4 percent. Orr recommended the board take the 4 percent revenue increase — the maximum tax increase a district can approve that is not subject to a possible recall vote.
“I know its not an insignificant increase,” board member Damon Jackey told the board. “Tax is a three-letter word that becomes a four-letter word.”
Individually, the board members discussed how keeping up with expenses was necessary to maintain the quality education the district provides its students.
Board Chairman Frank Hall acknowledged that the additional tax takes money from families and seniors who are already facing some tough times.
“Yes we need funds, but every family out there has needs,” Hall said. “That money comes out of the pocket of every person in the county.”
Hall noted that the school districts in neighboring counties also take the 4 percent tax revenue increase, and other districts have to do so to keep salaries competitive. “At some point we need to take that money and put it back in the classrooms for the kids.”
The board voted unanimously to set the property tax rate at 71.4 cents per $100 value. The motor vehicle tax rate of 54.8 cents per $100 value was not changed.
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