Property Tax Calendar a Challenge, Panel Told
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2019 June PUBLISHED BY LEGISLATIVE RESEARCH COMMISSION Volume 32, No. 3 LEGISLATURE.KY.GOV/LEGISLATION/PAGES/DEFAULT.ASPX Postsecondary funding eyed Property tax by budget committee calendar a by Rebecca Hanchett challenge, LRC Public Information FRANKFORT—A performance-based panel told higher education funding model passed into law two years ago is working for Kentucky’s by Rebecca Hanchett two research universities, the Interim Joint LRC Public Information Committee on Appropriations and Revenue was told at its June 4 meeting. FRANKFORT—State law sets an end-of- University of Kentucky President Eli Cap- year deadline for Kentucky property owners ilouto and University of Louisville President to pay their tax bills without penalty. But local Neeli Bendapudi told the committee that they governments say they must meet several dead- favor the formula, which allocates a portion of lines before the first tax bill is ever mailed. state funding based on a university’s perfor- Changes to any of those deadlines, found mance on 11 key metrics. UK recently out- on what is called the Kentucky “property tax performed the average in 10 of those metrics calendar,” can disrupt the tax assessment and while U of L outperformed the average in four collection process, officials told the Interim Rep. Jason Nemes, R-Louisville, questions U of L Pres- Joint Committee on Local Government on June of the metrics, according to the universities’ ident Neeli Bendapudi on Kentucky’s postsecondary ed- leaders. 6. One of those officials was Kentucky Associa- ucation goals at the June 4 meeting of the Interim Joint tion of Counties (KACo) President and Cald- The performance-based funding model Committee on Appropriations and Revenue. was created in 2017 with the passage of Senate well County Magistrate Elbert Bennett, who Bill 153, sponsored by Senate President Pro told lawmakers that many local government Tempore David P. Givens, R-Greensburg. It Committee on Appropriations and Revenue, duties related to property taxation overlap to is gradually replacing what Givens called the thanked Capilouto, Bendapudi and his fellow meet the calendar’s statutory deadlines. “shares allocation” model that based funding lawmakers for their support of the perfor- “Any single change in the property tax on each postsecondary institution’s share of mance formula, now in its second year. The calendar has a ripple effect,” he said. the state’s postsecondary budget. goal, ultimately, is to push the state’s post- Agreeing with that assessment was Mack The model is being phased in at the state’s secondary institutions closer to the national Bushart, a former Marshall County property universities and community colleges over a average in degree attainment, he said. valuation administrator (PVA) and current three-year period beginning with fiscal year “If we can get to that place – almost at executive director of the Kentucky PVA As- 2018-2019, according to the Kentucky Council the national average for postsecondary degree sociation. PVAs are responsible for assessing on Postsecondary Education (CPE). attainment – we can change the economy in real estate and personal property in the county Givens, who serves on the Interim Joint Continued on page 3 Continued on page 3 THE KENTUCKY GENERAL ASSEMBLY 1 State child support guidelines under Judiciary panel’s review by Rebecca Hanchett LRC Public Information FRANKFORT—Judges have to suspend “disbelief” when awarding child support based on the 32-year-old income data behind Ken- tucky’s child support guidelines, a family court judge told state lawmakers on June 7. The 1987 data – provided by the United States Department of Agriculture to help Ken- tucky and other states enact federally-required child support guidelines—gauged what it took to raise children at different income levels over three decades ago in an “intact” family, or a nuclear family in which both parents live in the home, Fayette County Family Court Judge Lucinda Masterton told the Interim Joint Com- mittee on Judiciary. Many families today are single-parent families. “Of course, (a nuclear family) is not what we’re dealing with anyway, so there’s a certain suspension of disbelief that you have to have with the guidelines to begin with,” she said. There have been numerous attempts to ad- Sen. Robin Webb, D-Grayson, speaks on issues affecting child support and guardians ad litem in Kentucky before the just the child support guidelines amounts and Interim Joint Committee on Judiciary on June 7. update other provisions over the past several years, with federal funding on the line under Policy Research to update the guidelines. the 1988 Family Support Act, a 31-year old Among other requirements, Hubbard said federal law that Masterton said requires states the Center will present up to three onsite pre- to pass guidelines that are presumed to award New draft guidelines sentations on guideline recommendations and “correct” child support amounts. States that supportive data. “This includes availability to failed to follow the law, she said, could poten- to consider should be available answer technical and substantive questions for tially lose money. as early as this fall, legislative hearings,” he said. “For 2017, if we had been called to task The recommended guidelines should be on this, we would have had a minimum of $9 according to Department for ready by this Sept., said Hubbard, with a final million at stake,” she said. “If they really didn’t Income Support Commissioner report from the Child Support Guidelines Com- like what we were doing, $180 million we could mission ready by the end of October. lose -- a big number.” W. Bryan Hubbard. Sen. Robin Webb, D-Grayson, asked that Lawmakers most recently attempted to the committee hold more discussion on the pass revised guidelines in 2018 and 2019. Cer- issue. tain changes were became law, but proposed “There are a lot of moving parts in child adjustments to the child support guideline method and other issues affecting the guidelines support, there is a lot going on,” she said. “There amounts in the 2019 legislation were removed addressed as soon as the 2020 regular legislative are contracts being consolidated, budgets being because of legislative concerns that Masterton session. cut. And I want to know more about those.” said she understood. “It’s got to be corrected, so I will echo, it Petrie said more meetings are to come, She did urge lawmakers to act soon to must be dealt with,” said Petrie. “I want this both on child support and the issue of guard- adjust the guidelines so that judges are acting dealt with.” ians ad litem which was discussed earlier in the consistently and not deviating from the guide- New draft guidelines to consider should be meeting. lines that are in place. available as early as this fall, according to Ken- “These two topics are things that need to be Interim Joint Committee on Judiciary Co- tucky Cabinet for Health and Family Services moved along,” he said, adding he’d like for other Chair Rep. Jason Petrie, R-Elkton, said the ur- Department for Income Support Commissioner members of the committee to help “take the gency to pass new guidelines has been building. W. Bryan Hubbard, who told the committee that lead” in fostering additional discussion. “If you’d He said he wants the child support calculation his department is working with the Center for make the contact that’d be great.” 2 2019 Interim LEGISLATIVE RECORD election could add another 45 or so days to the schedule. Some argue that’s good reason for Property tax, counties to not raise revenue above four per- from page 1 cent, Turner said. He challenged that thinking. “You could have people say, ‘Well, you’re going to have to live within your means. You and preparing the property tax rolls, with an can’t consider something higher than a four annual assessment date of Jan. 1. The current percent.’ Well, that’s fine as long as I can send tax calendar, he said, can make that work more Anthem Blue Cross and Blue Shield a letter and challenging. say ‘look, you can’t raise your rates more than It has “more moving pieces than a Swiss this amount,’” because the county’s bills still watch. And if they don’t really gee and haw just have to be paid, Turner said. right, again, it’s got real consequences at the end Legislation that affects the calendar for a of the year,” Bushart added. few local government and quasi-government PVA assessments are ultimately open to an entities was passed last session under House Bill appeals process and ultimately sent to the state, 49, sponsored by Rep. Stan Lee, R-Lexington. which calculates and certifies the property tax Signed into law earlier this year, HB 49 extends the deadline to petition for a recall election on rates by June 30. Once the numbers are certi- Interim Joint Committee on Local Government Co-Chair fied, the calendar gives most counties 45 days to property taxes levied in Lexington and Louis- Rep. Michael Meredith, R-Oakland, asks local officials set the property tax rates that will be on tax bills ville to 50 days after a levy is passed. about challenges presented by Kentucky’s property tax delivered to sheriffs by each Sept. 15 for mailing. The deadline to petition for a recall under calendar at the committee’s June 6 meeting. Forty five days may seem like enough the new law will remain 45 days in other Ken- time for a fiscal court to set the tax rate, LaRue tucky cities, counties and local taxing districts. Boards Association Director of Governmental County Judge/Executive Tommy Turner told Department of Revenue Division of Local Relations Eric Kennedy said full assessed value the committee, but “sometimes it’s pushing it,” Support Assistant Director Melissa Klink, who across the state is needed “for the overall fund- he said.