Winchester mayor warns state SB1 changes could leave city and rural counties with big revenue losses
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Summary
Mayor Bob McCoy told Randolph County commissioners that changes in the state's school funding formula (SB1) could reduce City of Winchester revenues by about $1 million in 2028 and that rural counties may be disproportionately affected, urging attention in the upcoming short session.
Mayor Bob McCoy briefed Randolph County commissioners on potential fiscal impacts from state-level tax and funding changes pending in the legislature, saying the formulas under SB1 could significantly reduce local revenue.
"City of Winchester in 2028, lit wise, is expected to lose about $1,000,000," McCoy said, explaining that statewide reallocation and property tax relief credits can affect municipal local income tax distributions and circuit-breaker offsets. He and other commissioners warned that rural municipalities and counties may not see the same property tax relief benefits as larger municipalities and that the local calculus varies by jurisdiction.
McCoy said the short session at the Statehouse may address some elements but urged local officials to monitor developments because projected revenue reductions could force cuts to services, and he flagged potential consequences for parks, streets and public safety if reductions approach the 27–30% range he characterized in his analysis.
Commissioners noted concerns about circuit-breaker impacts and asked staff to track state actions and model local revenue scenarios ahead of the 2027 budget process.