Kentucky Senate narrows school-board taxing power after heated Fayette County debate

The Kentucky Senate passed Senate Bill 76 on Jan. 23, 2026, by a 28-6 roll call, limiting county school boards from increasing occupational license taxes above a 0.5% base until the county population reaches 500,000.

The sponsor, identified in debate as the senator from Fayette 12, said the change raises the threshold from 300,000 to 500,000 and "is in response to the things that happened in Fayette County," citing constituent outcry and an Attorney General opinion referenced on the floor. He described recent budget strain in Fayette County schools and said the measure is intended to allow more public discussion before tax increases.

Opponents, including the senator from Fayette 13, disputed descriptions of Fayette County's financial mismanagement and pointed to four consecutive independent audits that expressed unmodified opinions on the district's financial statements. The senator from Fayette 13 argued the district has seen strong student outcomes and said, "We are getting it done in Fayette County," while acknowledging operational questions exist.

Other senators pressed both sides on specific numbers. Sponsors and critics debated a reported $14.9 million to $16 million budget shortfall cited by the sponsor, the size of Fayette County's contingency (the sponsor said $28 million), and the costs of travel and outside audits that critics described as "wasteful spending." Several senators referenced a superintendent named Demetrius Liggins, including claims about an Australia trip and ticket costs; those allegations and defenses were raised during floor debate but were not resolved in the chamber.

Members delivering vote explanations framed the dispute as one of public trust and local control. Supporters argued the bill is a corrective mechanism to protect taxpayers when school boards pursue rate increases without broad public buy-in; opponents said the measure undermines locally elected boards and noted that auditing reports cited by the sponsor gave the district "clean" opinions.

The bill moved through a committee substitute before final passage. The Senate record shows several members used allotted time to explain their votes; the final roll call was 28 yays and 6 nays.

The immediate effect of SB76 is procedural and statewide: it changes the statutory population threshold governing when a county school board may increase the occupational license tax above 0.5%. The sponsor signaled that the measure responds to concerns raised in Fayette County; committee and further legislative action (including House consideration) will determine final enactment and any implementing detail.