Boone County school board approves 65.5-cent property tax rate to restore district funding

The Boone County Board of Education voted to levy property tax rates that will generate an estimated $142 million for the district, approving 65.5 cents per $100 of assessed value for real estate and tangible personal property and 49.7 cents per $100 for motor vehicles at its public meeting.

Board members and staff said the move restores local revenue needed after years of declining state support. Daryl Denham and business office staff told the board the 65.5-cent rate would produce about $142 million in revenue, while taking a lower, compensating rate would yield about $137.5 million — roughly $4.5 million less.

The vote followed a public hearing that drew dozens of speakers, including teachers, parents, students and district employees. Kelly Reid of the Boone County Education Association urged the board to approve the rate, saying, “I am speaking in favor of the tax increase,” and pointing to recent pay gains that the union says help recruit and retain staff. Several teachers and school leaders described programs and student needs they said depend on stable funding. "This is not a new tax or funding source. Taxpayers are already paying this tax," one long-time teacher said during public comment, urging renewal to cover inflationary costs and keep staffing levels.

Opponents at the hearing raised concerns about tax burdens and called for alternative savings. Resident Randy Stegall urged cuts to administration and said retirees and fixed-income residents face pressure from higher bills. Renter Ari Spoford said the levy will be passed along in rents and that the increase will hit low-income households. Bill Kunkel and others urged the board to seek different revenue models and flagged property-rights concerns.

Board and staff presentations emphasized two technical points that shaped the decision. First, the district’s SEEK state funding has declined relative to local needs; the presentation and board discussion noted roughly $10 million in lost SEEK funding over the last 10 years. Second, assessors revalue property on a four-year, quadrant-based cycle; the district’s local assessed value rose this year but by far less than in the previous cycle, creating uneven year-to-year revenue changes. Daryl Denham said County assessors reported a $563 million increase in real-estate assessment this year but a drop in tangible personal property assessments.

Superintendent Dr. Haswold and board members framed the measure as a restoration to the district’s long-run average rate. Board members also noted contingency planning and accountability: the working budget includes a contingency of 5.6 percent (the state requires 2 percent), and the finance staff will post the full budget and presentation on the district website. Treasurer Katie Noonan provided an August cash-balance snapshot and explained collection fees paid to the county for mailing and processing tax bills.

After discussion the board moved to adopt the rates as presented. The motion to levy the rates passed (4 yes, 1 no). Board members then approved the district’s working budget for FY2026 and an "expansion of student opportunities" program; both measures passed on separate votes, 5-0. The consent agenda covering routine personnel, contracts and field trips also passed unanimously earlier in the meeting.

Board members and staff urged residents to review the budget documents posted online and to direct questions to the finance office. Several people who spoke at the hearing asked the board to continue advocacy with state lawmakers over the SEEK formula, saying only a state-level change would prevent repeated local increases.

Votes at a glance - Consent agenda (items A through TT): motion to approve by board member Wolf, second by board member Young; outcome: approved, 5-0. - Tax rate levy and property assessment: motion to levy rates as presented (65.5 cents per $100 of real and tangible property, 49.7 cents per $100 of motor vehicles); outcome: approved, 4 yes, 1 no. - FY2026 working budget: motion to approve by board member Wolf, second by board member Byrd; outcome: approved, 5-0. - Expansion of student opportunities (program funding included in budget): motion to approve by board member Wolf, second by board member Byrd; outcome: approved, 5-0. - Motion to adjourn to closed session (KRS 61.81): motion by board member Berg, second by board member Young; outcome: approved, 5-0.

The board directed staff to publish the budget presentation and supporting documents on the district website and said finance staff would continue outreach explaining how the rates and assessed values work. The board also said it will continue discussions with Boone County assessment and clerk offices about the local assessment cycle and with state lawmakers about the SEEK funding formula.