Madison school board votes to increase tax rates

Aug. 28--Real estate and personal property school tax rates will increase 2.8 percent for the 2015-2016 fiscal year, the Madison County School Board decided Thursday during a special called meeting.

Board Member Mary Renfro was the only vote against the increase, although several community members, including Renfro's 8-year-old daughter, voiced their disapproval.

The new rate of 61.8 cents per $100 of assessed value equates to an approximate raise of about $34 on a home valued at $200,000, Superintendent Elmer Thomas explained.

With the raise, the district's revenue will increase approximately $1.55 million.

However, Debbie Frazier, chief financial officer, noted that the district's assessment improved, meaning about $1 million less in funding received from Support Educational Excellence in Kentucky will "offset" tax money.

The increase is spurred from a variety of additional costs, Thomas said, including a $220,000 insurance hike and a state-mandated two-percent raise for teachers with approximately $290,000 not covered by the state.

The board did not request an increase last year or three years prior, but did ask for an increase during the 2013-14 fiscal year to help pay for full-day kindergarten, Thomas said.

The district does not anticipate requesting a tax increase during the next fiscal year, both Thomas and John Lackey, board chair, said. "Barring any other unforeseen circumstances," Thomas added, noting that an emergency might call for an increase.

Lackey added that a tax reduction might be in order for the upcoming year if two lawsuits are won. The district is currently in two lawsuits, Thomas explained.

A lawsuit requesting taxes be paid on the privately-owned Grand Campus building leased by Eastern Kentucky University could bring in an additional $200,000 in revenue.

Although it would not bring in much revenue, the board is currently in a multi-city suit against Kentucky School Boards Insurance Trust Fund.

Several speakers during the meeting noted to the board that although they were requested to pay more in taxes, they have received no cost of living increases from their employers.

One speaker, Mary Mcmahon, challenged board member Susan McAffee, asking her to remember that she said she would not vote for an increase in taxes before she was elected.

McAffee did not comment.

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