Recall, research, rebukes: Fallout from district’s request for more tax dollars

Fayette County Attorney Angela Evans said Wednesday her office is researching to provide guidance to the fiscal court after the school board approved a resolution asking the court to increase the Fayette County occupational license tax.

Under state law, county attorneys represent fiscal courts in Kentucky.

“I was only made aware of this issue yesterday,” Evans told the Herald-Leader Wednesday.

“My office is researching the entire occupational license tax issue to provide proper guidance to the fiscal court.”

The fiscal court is likely to meet June 5 to vote on the tax increase. Amid questions on whether the school board vote followed Kentucky law, district leaders insisted Wednesday it is legal.

Despite opposition, a split Fayette County school board Tuesday approved a resolution seeking an increase to the occupational license tax rate to help tackle a $16 million budget deficit.

The Fayette County Public Schools board voted 3-2 to ask the Fayette Fiscal Court to increase the occupational license tax rate for schools from 0.5% to 0.75% of wages of individuals and net profits of businesses.

Parent Matthew Vied said Wednesday he will lead an effort to recall the tax increase if the fiscal court approves it.

Multiple people at Tuesday’s school board meeting asked the school board to hold off on voting on the resolution until a public hearing could be held, but board chair Tyler Murphy, vice chair Amy Green, and board member Penny Christian voted to ask the fiscal court for the increase.

“I will be leading the recall effort. It can’t officially start until the fiscal court votes,” Vied said.

”We will have 45 days to collect approximately 14,000 signatures. If we’re able to collect enough signatures, the issue would then be put on a ballot for a vote. Either special election, or the next regularly scheduled vote. FCPS would likely decide to not wait and decide to go with a special election.“

“To propose and pass a $30 million tax increase with just four days notice, three days of which were a holiday weekend, is unconscionable. Doing so likely violated state law and definitely violated public trust,” he said.

If the recall effort is successful, the district will find themselves in the position of needing to address their budget woes through fiscal responsibility and spending reductions, which is what they should have done in the first place as opposed to yet again leaning on the taxpayer for more and more revenue, Vied added.

The current occupational license tax is expected to bring in $57 million to the district for the next fiscal year. Initially, the increase in January 2026 would be $13 million to $16 million with an estimated $27 million to $32 million annually when fully implemented, Fayette Deputy Superintendent Houston Barber said.

Kentucky state law — KRS 160.603 — says that “notice shall be given by causing to be published, at least one (1) time in a newspaper of general circulation published in the county or by posting at the courthouse door if there be no such newspaper, the fact that such levy is being proposed.”

The law also says: “The advertisement shall state that the district board of education will meet at a place and on a day fixed in the advertisement, not earlier than one (1) week and not later than two (2) weeks from the date of the advertisement, for the purpose of hearing comments and complaints regarding the proposed increase and explaining the reasons for such proposal.”

District spokesperson Dia Davidson Smith said Wednesday afternoon the district’s process in seeking the increase was legal. The resolution became public for the first time over the weekend when it appeared on the Tuesday meeting agenda.

No public hearing was held.

‘We’re incredibly thankful for the ongoing support from our Fayette County community. The investment in our public schools is making a real difference in the lives of students, and we value the community’s trust,” Davidson Smith said.

“Some have asked about the notice and hearing requirements under KRS 160.603. That law only applies when a school board itself imposes certain taxes, like the property tax or utility tax. That’s not what’s happening here. Instead, the Board of Education has adopted a resolution informing the Fayette County Fiscal Court of its desire to implement a countywide occupational license tax to support public education,” she said.

“This would replace the current school district occupational tax. Because this is a county-level tax, it follows a different legal process and is not subject to the requirements of KRS 160.603,” said Davidson Smith.

“This step represents a natural progression in the community’s growth and shared responsibility. Fayette County has now reached the statutory threshold at which the law was designed to broaden the base of support for public education across the entire county,” said Davidson Smith.

Fayette County Clerk Susan Lamb said the fiscal court had not received the resolution as of 2:30 p.m. Wednesday.

Board members Monica Mundy and Amanda Ferguson voted against the resolution.

“This community should not be misled into thinking they’ve had meaningful time to provide input on the Occupational License Tax announced over a holiday weekend,” Mundy said in a Facebook post after the vote.

“The process by which we govern matters. Our students deserve to see a model of leadership that goes beyond the bare minimum—one that ensures every voice has a chance to be heard. she said.

“If there’s time to consult with stakeholders, build a web page and produce a video, then there’s time to inform the board and the broader community before the vote,” she said. “We can do better. I will do better. Our students—and our community—deserve nothing less,” Mundy said.

After the vote, Murphy said in a Facebook post the tax increase will allow the school district to provide a 1% raise to all FCPS staff and increase pay for family resource center staff.

The increase will fill the gap in the increase in school meal costs without increasing the cost to students and families, Murphy said, and continue to fund school safety efforts that cost more year over year than the safety nickel levied can cover.

FCPS has cut almost $18 million from last year’s budget already, he said.

“This next step within the current tax code will allow FCPS to continue its investments in our students, staff, and families,” Murphy said.

County Commissioners Brian Miller, Alayne White and David Lowe would be voting on the resolution.

On Wednesday White and Lowe referred questions to County Judge Executive Mary Diane Hanna or County Attorney Angela Evans.

Miller could not immediately be reached by telephone.

This story was originally published May 28, 2025 at 3:19 PM.