School Board Adopts Option 3 Tax Rate To Address $331K Budget Deficit

In the recent McCreary County Board meeting held on August 27, 2025, significant discussions centered around the district's tax rates and the financial challenges facing local schools. The board reviewed three tax rate options aimed at addressing a projected budget shortfall of approximately $331,000 for the upcoming fiscal year.

The current tax rate stands at 0.00350, which would generate an estimated revenue of $1.9 million. The board also considered Option 2, proposing a tax rate of 0.00355, expected to yield around $1.931 million, and Option 3, with a rate of 0.00358, projected to bring in similar revenue. The discussions highlighted the pressing need for increased funding due to a significant reduction in revenue from the Secure Rural Schools Act, which dropped from around $200,000 in previous years to just $14,451 this year.

In addition to the revenue shortfall, the board noted rising costs, including a $68,911 increase in insurance premiums and a 5% rise in utility expenses, further straining the budget. The implications of these financial pressures were clear: if the board opted to maintain the current tax rate, the school district would face a loss of $43,000, exacerbating the existing deficit.

The board's deliberations also touched on the importance of providing quality educational opportunities for students, with members expressing a willingness to consider tax increases as a necessary step to ensure adequate funding. A motion was made to adopt Option 3, reflecting a consensus that without adjustments, the district would continue to experience financial losses.

Additionally, the board addressed personal property tax rates, proposing a separate motion for a rate of 0.003, which aligns closely with the real estate tax rates in the area.

As the meeting concluded, the board recognized the urgency of these financial decisions, emphasizing the need for community support to sustain educational programs. The anticipated next steps include finalizing the tax rate decisions and continuing advocacy for federal funding to mitigate the impact of the recent revenue declines.