Year of Publication
Martin School of Public Policy and Administration
Public school districts in the Commonwealth of Kentucky are primarily funded from federal, state, and local sources. While the proportion of each of these funding sources differs from district to district, the local property tax is one source that is within the control of locally-elected officials: the members of the local Board of Education. While some Boards of Education choose to increase local tax rates to increase local revenue, others do not. This research suggests that property value assessments and median incomes of districts that choose not to increase tax rates are similar. A majority of the counties studied are under the statewide average in these two measures. This suggests that these two measures are an indicator in a district’s proclivity to increase property tax rates. However, these same districts did not show similarities when comparing unemployment rates and the General Fund Balance as a percentage of expenditures. These two measures are more heterogeneous in their distribution above and below the statewide average line. This suggests that while important financial and economic indicators, they do not appear to be characteristics that would lead to further understanding of Board of Education tax policy trends.
Wells, Andrew J., "An exploratory comparison of Kentucky public school districts that primarily select the “Compensating Rate”" (2019). MPA/MPP/MPFM Capstone Projects. 331.