FORT THOMAS — The Fort Thomas school board is poised to approve a property tax increase of up to 32.4 percent in an effort to offset shortfalls in state education funding.

        Under the proposal, real estate and tangible-property taxes would go up by 22.7 cents, from 70 cents to 92.7 cents per $100 of assessed value.

        The increase would cost the owner of a $150,000 house an additional $341 a year in property taxes, bringing the total tax bill to $1,391 annually. For a $300,000 house, the amount of the increase would be $682 a year.

        “If the board doesn't adjust the tax rate to some extent, then we would be doing some major reduction in staff next year,” Superintendent Larry Stinson said. The proposed 92.7-cent tax rate is expected to produce about $2.8 million more a year.

        Because the proposed tax increase exceeds 4 percent, voters could recall it, under state law.

        “That (proposed 22.7-cent hike) is not a frivolous number. That is what it takes to completely address our concerns,” Mr. Stinson said. “It will allow us take care of the high school building in terms of the capital needs.”

        Officials in the 2,300-student district say the tax rate would be enough to address their needs — about half for capital improvements — for the next six years, including the 2002-03 school year.

        The school board is expected to vote on the rate increase Sept. 5 after a 7 p.m. public hearing in the Highlands High School Resource Center.

        Blaming a lack of state funding, the superintendent said the tax increase is needed to keep the top-performing district afloat.

        “We've been limited to a 4 percent increase in local tax revenues,” he said. “The way we've been able to balance the budget over the years is by providing minimal salary increases to staff and by cutting back on our contingency allotment. We've cut back on some programs; we've reduced staff; we have had to limit the monies we've spent on maintaining our facilities And it's gotten to the point where we just can't do that anymore.”

        Board chairman Brad Fennell said he supports whatever decision the board makes and plans to vote for the proposed increase. But he admits there is a difference of opinion on how to prioritize fixing the district's financial woes.

        He first called for taking legal action against the state for the “unfair, unjust” funding formula, then raising the tax rate.

        “All we're doing is buying ourselves more time. What happens six years from now, we go back and tax our citizens?” Mr. Fennell said. “We cannot continue to tax and tax our citizens.”

        Mr. Stinson said district officials plan to accelerate their push at the state level to modify the funding formula.

        The state, under the Kentucky Education Reform Act, funds school districts based on their local property values, in an effort to provide equal educational quality across the state. Poorer districts get more state help.

        So because of the district's high property values, Fort Thomas receives one of the lowest state funding allocations.

        The 2000 median housing value in Fort Thomas, according to the U.S. Census, is $131,500, and the 2000 median household income is $49,575.

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