The Facilities Support Program of Kentucky (FSPK) provides funding based on property assessments. To be eligible to receive state funding for school facilities through FSPK and the SFCC, school districts must levy a 5-cent equivalent tax (colloquially referred to as a “nickel”) in addition to the 30-cent equivalent tax required to participate in SEEK. This 5-cent equivalent tax must be committed to the district’s building fund. All of the school districts in Kentucky have levied this tax.
The 5-cent equivalent tax is often referred to as the “Local FSPK.” This tax may be equalized at 150% of the statewide average per-pupil assessment through the state’s budget process. This is referred to as the “State FSPK” or “equalization.”
In various budgets, the General Assembly has authorized districts to collect other nickels and has equalized them.
Additional Information Regarding Local Taxes
The rates levied by district and type of tax are posted on the Kentucky Department of Education’s website. The actual tax rate that districts levy to produce the 5-cent equivalent tax is greater than 5 cents because the calculation accounts for the fact that the tax is applied only to real estate and personal property, not to motor vehicles. This calculation is also adjusted to reflect that districts will collect less than the total amount of the tax. Regardless of the amount of tax revenue the district collects, the district must transfer an amount equal to 5 cents per $100 of the assessed value of property and motor vehicles into the district’s building fund.
Detailed information about local taxes and equalization can be found on the Kentucky Department of Education’s website.