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Revenue-sharing dollars allocated to local governments above that cap under the proposal would be split between cities and unincorporated areas based on population and road miles, KLC officials told the Interim Joint Committee on Local Government. “We will include all that: the legislative agenda, the formula of Fifths, the way it works with the new proposal… Setting the cap at that level, he said, would hold counties “harmless,” or essentially allow them to continue receiving the funding they already enjoy.“I think that cap, if there is some cap, needs to also have an inflationary increase as well—That’s the kind of thing I think the county judge-executives and KACo (Kentucky Association of Counties) would probably be interested in working with together,” Du Plessis said. Steve Riggs, D-Louisville, said the committee needs a simplistic, written definition of the Fifths Formula and other pertinent information from KLC, which KLC Deputy Executive Director J. Previous KLC road fund proposals had considered taking some of revenue sharing dollars away from the counties and reallocating it to cities, he reminded lawmakers.Inflation, he said, “could exasperate this situation.” Rep.
“We wanted to make sure our protocols are appropriate.” That drew a response from committee Co-Chair Rep. The Kentucky League of Cities’ plan would set an 5 million cap on state road funds distributed through a state 1948 revenue-sharing formula called the “Fifths Formula”—the formula on which distribution of county road aid and rural secondary road funding is based.
At the same time, he said Kentucky counties have received more road aid than they needed in recent funding cycles.
The road fund proposal is KLC’s top legislative priority for the 2017 session of the General Assembly, with pensions, tax options, drug abuse concerns, prevailing wage and unfunded mandates rounding out the list.
So you have no growth in customer base and a decline per capita in consumption.” The solution is for utilities to receive grants or borrow money to cover infrastructure maintenance and operations, said Goodmann.
Borrowing would require more utilities to increase their rates, which he said could lead to annual water utility rate increases of six to 10 percent over the next 10 years.