BY ROGER SMITH
MOUNTAIN CITIZEN
INEZ — Martin County Board of Education will hold tax rates steady this year while balancing a $20.5 million budget for fiscal year 2026.
The BOE voted unanimously Sept. 29 to keep the motor vehicle tax at 22.3 cents per $100 of assessed value, which District Treasurer Ernest Hale described as the “lowest rate in the state.”
The real estate and tangible property tax rate will also remain unchanged at 84.6 cents per $100.
Hale cautioned that a decline in property assessments will affect revenue. Assessments dropped by $2 million this year, he said, noting that the district would need to raise the rate to 87.6 cents to generate the same revenue as last year.
“If we stay at 84.6, we’re going to lose $109,000,” Hale told the board.
Superintendent Larry James acknowledged the financial strain but urged restraint.
“We’re kicking the can down the road, so to speak,” James said. “No one wants to raise taxes. I don’t want to be No. 1 in that category.”
Board chairperson Mickey McCoy of District 1 said the challenge goes beyond schools.
“We’re going to have to make this county more attractive,” McCoy said. “It’s not just the schools … It’s the county government, the city governments, those people who have some control must use their creativity to build up the population so that people may want to come here. It will help all around—county schools, cities.”
Budget
The board reviewed and accepted its budget for fiscal year 2026, projecting $20.5 million in both revenues and expenditures, a plan that reflects flat growth and careful balancing.
Though Hale did not state specific overall numbers, the budget as posted on the school district website anticipates the largest share of revenue will come from state sources. The Support Education Excellence in Kentucky (SEEK) program is projected at $8.8 million.
“Positives for this year,” Treasurer Ernest Hale said. “We have a SEEK increase. The per pupil payment went up by $260 to $4,586.”
However, with the loss of 69 students, SEEK will have little overall effect on the budget, Hale said. Instead of a $401,180 increase, the district will net $84,746.
An additional $4.1 million in on-behalf payments—state-covered benefits such as retirement contributions and insurance—brings total state support to nearly $12.9 million.
Local tax revenues are expected to remain steady at $2.65 million, a sharp decline compared to the nearly $4.2 million in the previous year when property and franchise taxes outperformed projections. Miscellaneous revenue is now projected at just $25,000.
Federal revenue plays only a minor role.
The district begins the year with a carried-forward balance of $4.8 million.
The largest portion of spending—$8.9 million—is dedicated to instruction, including salaries, benefits, supplies and classroom support. Salaries and benefits for teachers remain the single largest expense, accounting for more than $5.9 million, not including on-behalf benefits.
According to Hale, July 1 will trigger step increases for employees, with a projected $305,000 for the next year, based on current information.
Hale said other financial increases include the establishment of a police force, estimated to cost $233,000 for vehicles, equipment, firearms, ammunition and uniforms.
Plant operations and maintenance are estimated at $4.39 million, covering utilities, property services and building upkeep.
“Another concern is Kentucky Power is asking for a 14.5% increase in rates,” said Hale. “We spent about $400,000 for electricity across the district this past year. If they get the 14.5, it’s going to be another $68,283.”
District administration cost is estimated at $2.07 million, a figure that includes a contingency reserve of $1.29 million.
Student transportation will cost around $1.42 million, reflecting higher costs for fuel, maintenance and bus supplies.
School administration will be around $961,000 for principals and office staff.
Business support services will be $542,000, a slight decrease from last year’s allocation.
Debt service is budgeted at $130,000, the same as last year, and a modest $35,000 transfer is planned between funds.
The district projects a balanced general fund for 2026, with revenues matching expenditures dollar for dollar.