Fayette County board adopts occupational license tax increase after heated debate over budget transparency

The Fayette County Board of Education voted 3-2 Tuesday to adopt a resolution asking the Fayette County Fiscal Court to increase the county occupational license tax (OLT) from 0.5% to 0.75%, a change district officials said would generate roughly $13 million to $16 million for next year (because collections would begin in January 2026) and about $27 million to $32 million annually when fully implemented.

The action came after a lengthy budget presentation and hours of public comment that included sharp criticism of process and calls for more public hearings. Deputy Superintendent Houston Barber presented the proposal and the district—s fiscal picture, calling the OLT a viable option to "preserve the classroom" while avoiding higher property tax reliance. "We are proposing to adjust the occupational license tax ... from .5% to .75%," Barber said in the board meeting. "It would raise an estimated $27,000,000 to $32,000,000 annually when fully implemented. However, for next year ... it would generate about $13 to $16,000,000 in school funding." Barber also noted the additional cost to an average worker: "Additional cost for the average salary in Fayette County is about $13 per month."

Why it matters: District leaders described a projected funding gap of about $16 million for FY2026 that would result from rising personnel and operating costs and reduced federal supports. Board members and many public speakers said they supported protecting classroom investments but disagreed about the timing and process for the proposed tax. Opponents called for more detailed line-by-line cuts and a public hearing before a vote; supporters said the district—s student outcomes and safety investments justify seeking new local revenue.

What the board considered and decided: The board discussed alternatives presented in staff materials, including deeper departmental cuts, consolidation of facilities, and raising property taxes. A motion to table the resolution in order to hold a public hearing and reconvene later failed on a 3-2 tally. A subsequent motion to adopt the resolution passed 3-2 (tally announced by the chair). The board did not attach a sunset date to the tax in the adopted resolution. Barber said the OLT must be forwarded to the fiscal court within 10 days of the board vote and — if approved by the fiscal court — would take effect Jan. 1, 2026.

Key arguments at the meeting: Supporters, including board members and community speakers, emphasized maintaining investments in teachers, mental-health staff and school safety that district leaders credit for improved student outcomes. Board member Amy Green urged maintaining "investments in the classroom," saying the district—s gains in student performance and retention of staff justify revenue actions.

Opponents and public commenters criticized the speed and timing of the proposal. Multiple speakers — including parents, business owners and community advocates — said they first learned of the proposal only days before the vote and urged more public hearings and transparent detail on possible administrative cuts. "This approach to the gap is not only harmful to some of our most vulnerable in Fayette County, but is a lame attempt to slide a tax increase past the public over a holiday weekend," one speaker said during public comment. Board members also asked for more time to evaluate alternatives.

Formal action recorded: The board adopted the resolution to request the OLT increase and forwarded it for action by the county fiscal court. The motion as presented to the board directed staff to submit the statutory resolution and supporting materials to the fiscal court; the board recorded the outcome as "approved." The minute-by-minute vote record in the meeting transcript shows the tally (3-2) but does not list individual roll-call votes in the public audio.

What the district says will happen next: If the fiscal court approves the resolution, collections would begin Jan. 1, 2026, producing roughly half of the full-year revenue in FY2026. District staff said they will continue to monitor expenditures, pursue additional efficiency measures and form a stakeholder task force to review programmatic adjustments and campus realignment.

Discussion vs. decision: The meeting contained both extended discussion and a final decision. Board members questioned timing, legal notice requirements and community outreach; staff emphasized statutory deadlines and the district's multi-year fiscal trends. The vote to adopt the resolution was a formal board decision; separate programmatic changes remain subject to future board actions.

Ending note: The resolution closes a contentious public meeting in which many residents called for more time and detail. The fiscal court must now consider the resolution within 10 days of the board—s passage; the ultimate amount and timing of any OLT increase will depend on that county action and any implementation decisions the court requires.