KY bill addressing ‘widespread public frustration’ caused by FCPS advances

A Lexington Republican lawmaker criticized Fayette County Schools for attempting to implement a tax increase last year, saying it was a “public debacle,” as a Senate committee approved a bill to change how future occupational license taxes are introduced.

Sen. Amanda Mays Bledsoe, R-Lexington, filed Senate Bill 76 Jan. 13 in response to “widespread public frustration” following last year’s attempt by the Fayette County Board of Education to impose a new school board occupational license tax increase, a news release said.

SB 76 raises the population threshold required for a county to have authority to increase the tax from 300,000 to 500,000 residents. Fayette and other counties would no longer be able to implement such an increase unless they reach the new population requirement.

“The last year has been full of long school board meetings, budget inconsistencies, frustrated teachers, disappointed parents and a business community that doesn’t really know what to expect, and students who just need to be students,” Bledsoe told fellow lawmakers Wednesday. “This is not an acceptable environment.”

The bill was approved Wednesday by the Senate Appropriations and Revenue Committee. It now goes to the full Senate for consideration.

The legislation does not remove or change any existing occupational license taxes.

In 2025, the Fayette County school board voted to raise its occupational license tax during Memorial Day weekend, drawing sharp criticism for its lack of transparency.

In response to constituent complaints, Bledsoe formally requested an attorney general’s opinion. On June 4, Attorney General Russell Coleman issued a formal opinion finding the board’s action violated public notice requirements. The vote was later voided, and the tax was never implemented.

“After last year’s public debacle, I heard clearly from Fayette County residents who felt blindsided and frustrated. Their concerns were well-founded, and I shared them,” Bledsoe said at the Wednesday Senate committee meeting.

Bledsoe said such an increase would have affected 100,000 commuters who work in Fayette County.

Bledsoe said SB 76 will allow time for public trust to be restored while providing stability and confidence for both employees and employers in the years ahead.

District officials did not immediately comment Wednesday.

A Lexington Democrat has filed a similar bill.

Lexington Democrat’s bill

Rep. Anne Gay Donworth, D-Lexington, filed House Bill 405 earlier in the General Assembly to clarify how school occupational license taxes are proposed and approved in Kentucky, attempting to strengthen transparency and avoid the confusion that surfaced last year in Fayette County, a news release said.

The legislation updates state laws to detail the process for school boards to take when proposing or increasing a school occupational tax. It requires local boards of education to notify the public of the proposal, including an explanation of why the tax is needed.

The measure also clarifies the sequence of actions needed when a board proposes an increase in counties with 300,000 or more residents, and it reaffirms the role of the fiscal court in approving any higher rate.

“This is about clarity and transparency, while maintaining local control of our school systems.” Donworth said in a news release.

“Families deserve advance notice when a tax change is being considered, and school boards deserve statutes that are easy to follow. This bill lays out the steps in a clear order so the public can participate, and local officials can make responsible decisions without legal uncertainty,” she said.

This story was originally published January 21, 2026 at 3:34 PM.