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Kentucky League of Cities urges modernizing local revenue rules; flags threats to municipal finance
Summary
Kentucky League of Cities CEO JD Cheney briefed the Lexington council on the 2025 legislative agenda, stressing the need to modernize road funding and local revenue options and warning of several statewide and federal fiscal threats to city budgets.
JD Cheney, CEO of the Kentucky League of Cities, told the Lexington Fayette Urban County Council at its Jan. 21, 2025, work session that the League’s short legislative session priorities include modernizing the state road‑funding formula, clarifying which cities may impose a restaurant tax and protecting local governments from mandated state collection of local taxes.
Cheney told council members the municipal share of state road funding is skewed toward county and unincorporated-area allocations and that modernizing the formula would better align state distributions with city street maintenance demands. “Municipal road aid is heavily tilted toward counties,” Cheney said, describing Lexington’s position as a merged government that receives both municipal and county allocations but still faces inequities…
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