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With a roughly $350,000 budget pressure, Spencer County explores insurance-tax option and other revenue steps
Summary
Judge John Riley told Fiscal Court the county faces about $350,000 of budget pressure from recent deputy-salary-cap increases and lower Clerk excess fees; the court discussed using ARPA as a short-term patch but focused on longer-term options, including raising the insurance-premium tax (deadline March 23 for a July 1 effective date).
Spencer County officials told Fiscal Court on Jan. 18 that recent adjustments to deputy salary caps and a reduction in anticipated Clerk excess fees have produced a near‑term fiscal challenge.
Judge Executive John Riley said the court had increased deputy salary caps — $150,000 for the Sheriff and $50,000 for the Clerk — and that the Clerk's approved 2022 budget included about $148,000 less in anticipated excess fees, producing roughly a $350,000 budget gap. "Doing nothing will force this court to either use ARPA funds for payroll until a new court provides adequate annual revenue or to make cuts in important services to achieve a balanced budget," Riley said.
Riley outlined options to raise sustainable revenue, including increasing the county's insurance premium tax (currently cited in the packet as 3% countywide). He noted a March 23 deadline to notify the Kentucky Department of Insurance if the court wants a new rate effective July 1; raising the county rate to 7% (the city's rate inside Taylorsville was cited as 7%) could generate significant annual revenue in the judge's estimate.
Several magistrates said they opposed permanent reliance on ARPA. "ARPA money should be reserved for one‑time expenses," said Magistrate Beaverson, while the Judge acknowledged it could be used temporarily to bridge a gap. No ordinance or rate change was passed at the meeting; the judge said staff would research options and present a balanced budget for future action.
The court also reviewed the statutory timeline and administrative steps for implementing an insurance premium tax change so the body could act in time should it choose that route.
