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House Bill 229 could cost Lyon schools 14 teachers
Proposed legislation in the General Assembly could cost Lyon County schools up to 14 teachers.
House Bill 229 would change the formula by which the state distributes in-lieu-of-tax money from the Tennessee Valley Authority. The bill, introduced Jan. 11 by Barren County state Rep. Johnny Bell, portends an ominous future for counties that lost land to TVA and rewards counties that use TVA power.
Now counties, cities and school districts that lost real estate tax base receive in-lieu-of-tax payments based on the amount of land taken, the assessed value, and the property tax rate.
Lyon lost considerable acreage of its real estate tax base when TVA impounded Kentucky Lake, but it uses little TVA power.
Should the bill pass, Lyon County’s youth would likely suffer most.
Superintendent Quin Sutton said the loss of TVA in-lieu-of-tax payments would cost the school district about $570,000, a tenth of its budget. The lost revenue could translate into the loss of up to 14 teachers plus cuts in other budgeted items.
“Our proposed budget is right at $5.9 million — of course that’s a draft budget depending upon what legislators do this session,” Sutton said. “And we don’t know what they are going to do with state money. ... We use that in-lieu-of-tax money for day-to-day operations; we have to have that money.”
He explained that the money goes into the general fund and besides teachers’ salaries it also is used for maintenance and transportation.
“In the schools, we use that money to get us through,” Sutton said. “Once that money is gone, it’s gone. In most school districts personnel takes anywhere from 75 (percent) to 80 percent of the overall budget because we have to have people to work with kids.
“If this were to pass, of course, we would cut everywhere we could to prevent services being cut to students,” he said. “But I know, and I think everybody else knows, it would have to get into staffing, and $570,000, if it all came from staff ... is the equivalent of 14 teachers.”
Sutton added that he hopes all the cuts would not come from staff, “but the majority of it would have to.”
The proposed change doesn’t make sense to Sutton “because all the tax base in Kentucky is on property wealth,” he said. “And when TVA took property from us, we no longer had that as a tax base ... plus we don’t have people living on that property to use the power. So we’re a loser both ways if this is passed.”
Sutton said Tuesday that he talked with 6th District state Rep. Will Coursey and state Sen. Ken Winters about the issue. Both legislators assured him the bill won’t pass. Winters said if the bill gets out of the House he will oppose it in the Senate.
“But while they are in session, I’m still worried about it,” Sutton said.
Though the bill may not pass this session, the idea is afloat, and in these tough economic times, it could come up in the future as a means for counties without TVA projects to pad their budgets.
“The scary thing about this is you’ve got a legislator who is proposing this,” he said. “It may not get anywhere, I hope not, but they are knocking on the door,” Sutton said. “This time they may get their nose in, next time it could be a foot.”
Sutton said instead of considering any future tax hike, his “idea is to stop this bill, and proceed on.”
If the bill appears to be moving, Sutton has some days he can go to Frankfort to make his position known.
In the Herald Ledger’s presence, Sutton phoned an official in Frankfort to verify how the public may get involved.
Anyone concerned about Lyon County students’ future may voice their opposition to HB 229 to every member of the House and Senate by faxing a short message to 502-564-6543 and write on the cover page “to all.” A voice message may be sent by phoning 1-800-372-7181 and leave the message “to all.”
Sutton said that should House bill 229 pass, “Our kids are going to be the ones to suffer.”
These candidates want your vote
These candidates want your vote
The May primary election promises exciting races especially among Democrats.
Only two Republican have filed and they are seeking the nominations in different races.
Among Democrats, incumbent Jimmy Campbell has filed for judge-executive, but former Judge-Executive Terry McKinney is challenging him for the Democratic nomination. And Republican Wade White has also filed.
For magistrate in District 1, incumbent Democrat Charles Ferguson is seeking renomination, and Republican William “Willie” Edmonds has filed for his party’s nomination.
Incumbent Buddy Nichols and Eddyville City Councilman Ron Claxton are vying for the Democratic nomination for magistrate in District 2.
In Magisterial District 3, incumbent Democrat Steve Cruce is challenged for his party’s nomination by Ken Scott, Charles Guess, Marty Stinnett and Jed Walker.
Former county attorney Lindell Choat has filed to run for that office against incumbent Brandon Knoth, and former coroner Kyle Dunn filed to run for that office against incumbent Ronnie Patton.
Unchallenged Democrat incumbents are: Property valuation Administrator Christie Armstrong Freeman; Sheriff Kent Murphy; County Clerk Sarah DeFew; and Jailer Hank O’Bryan.
Races for city offices and for seats on the Lyon County Board of Education are non partisan, meaning candidates have until August to file.
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