LEGISLATION ANALYSIS: Senator Gex Williams Proposes $3 Million Tax Increase on Frankfort Residents
SB 220 One of the Largest Tax Increase Proposals in Recent Memory; Proposal in Clear Conflict with General Assembly’s Ongoing Work to Cut Taxes for All Kentuckians
FRANKFORT – Policy analysts and attorneys for the Frankfort Plant Board have reviewed and assessed the impact of Senate Bill 220, filed this week by State Senator Gex Williams and supported by Frankfort City Commissioner Kyle Thompson. The analysis is grim: a $3 Million tax increase on the people of Franklin County and a provision that attempts to prevent the Plant Board from communicating with its customers about future tax increase proposals.
“Honestly, we couldn’t believe it,” said FPB Communications Director Cathy Lindsey. “But it is our duty to keep our customers informed. If this bill passes, millions of dollars in tax increases will find their way onto the water, electric, and broadband bills of our customers. According to this proposal, Williams simply wants customers to pay more for basic utility services. We are adamantly opposed on behalf of our customers and community.”
Initially, Senator Williams had proposed to sell the Frankfort Plant Board to out of state corporations. A massive public outcry followed but he was unwilling to leave a good thing alone. He dropped his original idea in favor of a new one: raising taxes on the people of Frankfort who believe their local utility is working just fine. No problem exists; no solution is needed.
“Make no mistake – a vote for this bill is a vote to enact massive tax increases,” said Lindsey. “It is unfortunate that Commissioner Thompson, who has been a strong supporter of FPB, has thrown in with Sen. Williams on this issue. While we appreciate his attempt to fix a bad bill, it’s still a bad bill that puts an unneeded burden on the people of Frankfort. We strongly encourage the rest of the City Commission and local elected officials to reject this tax increase proposal.”
In addition to the massive tax increase proposal, the legislation also seeks to muzzle the Frankfort Plant Board in the future, preventing it from communicating with its customers on key issues.
“I guess if I was trying to raise taxes by $3 Million, I wouldn’t want anyone to know it either,” said Lindsey. “But we have serious First Amendment and corporate governance concerns about Frankfort politicians dictating what we can and can’t tell our customers, especially when it comes to massive tax increase proposals that would hurt family budgets and businesses we serve.”
Another provision of the bill would stop the Plant Board from engaging in community activities, such as the FPB’s annual support of the Frankfort Rotary Youth Fund. The FPB has worked with the Rotary Club of Frankfort, which for 30 years has awarded over $300,000 to help more than 200 students from Frankfort and Franklin County pursue additional training and education beyond high school. There’s also concern in the analysis that jeopardizes the types of events and popular programming that Cable 10, FPB’s local channel, can cover.
“We try to be good stewards of the community by participating in activities that bring us all together, such as awarding scholarships to deserving students and covering local high school events. We are at a loss as to why Sen. Williams wants that to stop. If the worst idea he ever had was selling off the Frankfort Plant Board to out of state corporations, raising taxes and keeping Frankfort residents in the dark about it is a close second,” said Lindsey.
The FPB is encouraging its customers and all Frankfort residents to contact Sen. Williams and Commissioner Thompson to register their displeasure with the measure.
“You can visit our website where we’ve provided the mechanism for citizens to contact their elected officials. We pride ourselves on civic engagement and transparency. Although it brings us no pleasure to report this news, people need to know about this looming $3 Million tax increase and the attempts to keep folks in the dark about it,” said Lindsey.
Visit the website at IWantMyFPB.com to contact Senator Williams and Commissioner Thompson. Their phone numbers are also listed on the site if you want to call them directly.
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