Committee advances bill to require referendum when property tax revenue rises over 4%

Sen. Gary Boswell presented Senate Bill 41 as a measure to require taxing entities to place increases above 4% of the compensating rate on the ballot, replacing the current citizen-driven recall petition process for such increases. Boswell said the measure does not require a state constitutional amendment and that the Kentucky Farm Bureau supports it.

Opposing testimony came from school superintendents, including Dr. Carrie Ballinger (Rockcastle County) and Barry Lee (Casey County). They testified that Kentucky’s existing petition process allows voters to force an election and that SB41 would mandate referendums regardless of demonstrated community support, suspend levies pending the election, and impose special-election costs they estimated at $30,000–$50,000—money they said could instead fund staff or transportation.

Superintendents warned the automatic referendum would freeze district budgets and undermine local control, citing rising local costs such as construction, transportation, and insurance. Dr. Ballinger cited specific examples: a school bus that cost $97,000 in 2021 and about $155,000 in 2025, and property/liability insurance rising from about $168,000 in 2020 to close to $500,000 in the most recent year for her district.

Sen. Boswell replied that taxing entities can avoid the referendum simply by not raising taxes over 4 percent and argued the bill spares citizens from the burden of pursuing recall petitions. Committee members voiced concerns about shifting burdens and weakening local control during explain-the-vote statements.

The committee adopted a motion to report SB41 favorably (mover: Sen. Richardson; second: Sen. Nunn). The roll call recorded 7 aye votes, 3 no votes, and 1 pass; the measure passed the committee with favorable expression.