After a controversial public hearing Wednesday night, the Newport School Board voted for the lowest equalization tax rate of four proposals.

For the superintendent’s four proposals, the success rate was $7.68 per $1,000 of assessed property value.

The school district’s current property tax rate is $9.64 per $1,000 of assessed property value. Four proposals for the 2025 rate ranged from the compensatory rate of $7.68 at the low end to the highest proposal of $8.84. Although the district has proposed a lower rate, the district is expected to collect more money this year due to increased property assessments and taxpayers will still face a higher tax bill.

On Wednesday, the board held a public hearing to set the 2025 tax rate, and many residents voiced their opinions about the school district itself, including the quality of education and how the money should be spent.

The district’s annual budget is approximately $37 million, with property tax revenue averaging approximately $10.2 million of that budget over the past three years. In 2023/2024, with a tax rate of $9.64, local general funds were $10,342,745. In 2024/25, with the new, lower tax rate of $7.68, local general funds are expected to increase to $10,901,808, an increase of $559,063.

The equalization tax rate is the tax rate that a tax authority must impose in order to collect the same amount of tax on real estate as in the previous year. Depending on the value of the property, the equalization tax rate may be higher or lower than in the previous year.

“For example, if we were to use just the equalization rate on my house, my personal taxes would go up about 11% for schools alone, just because of the equalization rate,” said Aaron Southerland, a member of the Newport Board of Education.

Lynn Schaber, a member of the Newport Education Task Force (a subgroup of ReNewport) and a board member of EducateNKY, said she sees no reason to raise rates more than the compensatory rate. The education task force meets every two years to produce reports on the district.

“I would even hope that the board would say, ‘Hmm, I’m not sure we should really accept the equalization rate considering how much we spend compared to all the other school boards.’ But that’s totally your decision,” Schaber said.

One of the expenses Schaber is referring to is Newport Independent Schools’ per-pupil spending. The district spends about $30,000 per student annually, which is above the state average of $18,000. Newport School Superintendent Tony Watts said the district has many students who require special education, which contributes to those high costs.

There are just over 1,300 students enrolled in the district.

For example, Watts said there may be students who require adult supervision throughout the day.

“Instead of spending $7,000 per student, you’re obviously spending $30 ($30,000) to $40 ($40,000) on that child, depending on the experience of the person you’re placing them with,” Watts said. “So that’s a problem for us, a little hurdle that we have to overcome.”

Former Newport Commissioner Jan Knepshield has lived in the city since 1969. He said his two daughters attended Newport schools. During the meeting, Knepshield said what bothered him most was that the students themselves were not being discussed.

“Let’s start talking about the kids and taking care of them,” Knepshield said. “That’s what education is about, folks, not sitting here talking about tax dollars. We could spend what we currently take in per student and send almost all the kids, at least the high school level, to St. X (St. Xavier High School) in Cincinnati and give them a damn good education.”

One reason the county proposed those tax rates was to help offset a nearly $500,000 overassessment by the Property Assessment Administration. Watts said the county found out in January that it had been overcharged and must pay back nearly $500,000 in property taxes it collected.

Newport Independent Schools is not the only with a PVA error. Over in Kenton County, Erlanger discovered a $49 million error in its personal property tax assessment. That $49 million was removed from the city’s tax rolls for 2023 and will not appear on any further tax rolls, meaning the tax rate The amount set last year was lower than planned. The error cost the city $97,000.

Watts said the district hopes to recoup money lost due to the PVA error through the new tax rate.

The county intends to use the money for its stadium project, which residents also disagreed with. The football stadium has already received new bleachers, but phase two will add new food stands and restrooms, and phase three will add locker rooms. Watts said the cost of the stadium project is about $5 million.

In addition, the district needs new desks, a new gym floor and bleachers at the high school, according to Watts.

“I think given the academic quality and performance of our schools in Newport, taxpayers would be better off funding it if the money was spent on student education rather than locker rooms,” said Newport resident Alex Watkins.

The highest shares of economically disadvantaged youth in Northern Kentucky, based on 2022-23 data, were in the River City districts. Newport Independent topped the list with 90.3% of students classified as economically disadvantaged. The district also has the lowest overall state accountability rating for its high school in 2022-23, according to the data, and Newport is at the bottom of the list for overall middle school performance.

Learn more about Newport State and other NKY schools here.

With the exception of Board Chair Ramona Malone (who said she would have taken the compensatory rate plus 4%), all board members proposed taking only the compensatory rate.

“We have students who are doing great, and they need you,” said Newport Board of Education member Ed Davis. “They need your support. They’re not going to excel if everyone sees them as inferior students. They’re not.”

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