Paducah Board of Education chooses compensating tax rate to keep revenue stable for 2015-16
“We are voting in favor of the compensating rate because we owe it to our community to ensure that we are being great stewards of our taxpayers’ monies,” said board chair Dr. Carl LeBuhn. “As a district, we have worked hard to become even more efficient without sacrificing the high quality of education offerings and extracurricular offerings our students deserve. In our working session in August we examined each expenditure and revenue in our operating budget. We are confident that we can make it through this year’s state mandated 1 percent raise without having to generate additional monies from our local tax base. However, we can already tell from our early forecasts that the state mandated 2 percent raise in the 2015-16 school year will not be financed through state SEEK allocations.”
School boards determine the upcoming year’s tax rates annually. The board usually considers two options: the district can take the compensating rate, which is handed down by the Kentucky Department of Education, or an allowed 4 percent tax increase. The compensating rate is the rate that ensures that the district will receive the same amount of revenue as the previous year.
The compensating rate is set at a rate of 77.1 cents for every $100 of property. This is a 0.4 cent increase from 76.7 cents in fiscal year 2014. This will cost a family that lives in a $100,000 house $4.00 more a year, or $0.33 a month. The projected revenue from the increase will not change from last year.
Paducah Public Schools superintendent Donald Shively estimates that choosing the compensating rate will keep the district tax fund balance steady at about $7.7 million.