A second judge’s ruling that overturned how a Northern Kentucky library district can set its property tax has spiked fears across the state that many libraries could be in serious jeopardy.
“For now, it’s business as usual,” said Dave Schroeder, executive director of the Kenton County Public Library system. “We’re going to continue to provide the same excellent services we’ve always provided. But our great fear is that could end, not only in Kenton County, but across the state of Kentucky.”
A ruling by Kenton County Circuit Court Judge Patricia Summe found the Kenton County Public Library didn’t follow the right law for the past 34 years when raising its property tax. Last week, Campbell County Circuit Court Judge Julie Reinhardt Ward made a similar ruling against the Campbell County Public Library system.
Schroeder, who recently attended the Kentucky Public Library Association’s annual conference in Lexington, said representatives of the commonwealth’s public library systems “are watching very closely what is happening in Northern Kentucky,” amid fears that they’ll have to make massive cuts in programs and staffing, and, in some cases, close down entire library systems, if the decision stands.
“There are many counties that are looking at 60 to 70 percent cuts, and some that would have to take an 80 percent cut,” Schroeder said. “If this ruling stands, it would, without a doubt, close some library systems across the state of Kentucky.”
Ann Hammond, executive director of the Lexington Public Library, emphasized that while ruling is bad news for the affected libraries, “Luckily, Lexington Public Library is not one of them. We are not a taxing authority; we simply get the minimum amount set by state law for a city the size of Lexington. That amount is $0.05 for every $100.00 of assessed property value, which the city collects and passes through to us. Neither the city, nor the library has authority to change the amount,” she said in an email.
The Kentucky Library Association has formed a committee of librarians to monitor the issue and help libraries deal with the potential fallout, said Lisa Rice, the president of the Kentucky Library Association and director of the Warren County Public Libraries.
“My initial reaction continues to be shock and amazement and disappointment,” Rice said. “We really feel like we’ve been doing what we’ve been told to do for all these years, and now we’re being told that is not the correct method. We’ve all worked under the best intentions to do what was best for our communities. It is not something we take lightly.”
Campbell County will try to appeal, but the second ruling makes the library’s case more difficult, said Jeff Mando, attorney for the Campbell County Library District.
“If we have to roll back the tax rates in Campbell County to the level of the rate set when the library was formed in 1978, it will go back to 3 cents for every $100,” Mando said. “The annual budget will go from $4.6 million to $1.5 million. They will have to close branches, terminate employees (and) eliminate programs for kids and seniors.”
The attorney for the residents who’ve filed the lawsuits challenging the library districts’ taxing authority, however, found vindication in the ruling.
“I think it says their general reasoning in interpreting the statute was very consistent,” said Brandon Voelker, attorney for the plaintiffs. “We’re very pleased the rights of the people have been preserved. We’re pleased with the finding that they never lost the right to control the size and the scope of the library.”
If a higher court finds the library districts have improperly set the rates for 34 years, the case could set a daunting precedent for libraries in 79 counties with libraries created by petition under the same law. It could roll the tax rate for Kenton County Public Libraries back from 11.3 cents per $100 to 6 cents.
“If the ruling stands, we will take a 45 percent decrease in our tax rate,” Schroeder said. “If you were told you would have to go back and live off your 1967 income in today’s world, that’s impossible. We would have to do some very serious cutting.”
Although no decisions have been made, the Kenton County Public Library system has to consider all of its options in light of the judges’ rulings, Schroeder said.
If the tax rate is rolled back, the Kenton County Public Library system would be looking at “a greatly reduced materials budget,” he said. Staffing would have to be reduced by at least half, and educational and entertainment programming that’s recently drawn record attendance would be slashed.
“It’s very possible that we would have to close one or two branches,” Schroeder said. The district has three branches, in Erlanger, Covington and Independence.
A unified Kenton County library district was approved by petition from county residents in 1967.
During the 2011-12 fiscal year, the Kenton County Public Library system had 921,814 visitors who checked out just under 2.2 million items, said Robin Klaene, a spokeswoman for the Kenton County Public Library system. More than 6,000 programs were attended by 147,851 people, ranging from young children to senior citizens.
The library system’s programs and services include training in computer skills, workforce development programs to get people back to work, home-bound services for residents with a medical condition or disability, the Racing to Read program which delivers books to preschools throughout the county and other outreach programs for nursing homes and assisted-living facilities.
The president of the Campbell County Public Library Board of Trustees called Summe’s decision in the Kenton County case disappointing.
“All along we have been concerned that these lawsuits could have grave consequences on not just our own libraries but public libraries statewide,” Rebecca Helm said.
Officials and attorneys with the Campbell and Kenton library systems say they have followed the advice of the state for 34 years that a 1979 law gives them the same authority to raise taxes as any other special district, such as a fire district.
“For 34-plus years we’ve followed the advice and instructions from the state on how to set the rates, and for 34 years no one complained, not a member of the General Assembly, no one,” Mando said.
Residents in Campbell, Kenton and Boone counties, including many active with the tea party movement, have filed three lawsuits challenging this authority and claim a petition must be gathered to put any tax increase on the ballot.
They contend the 1979 law didn’t change how libraries should set the tax rate.
“It’s not about libraries,” Voelker said. “It is about rule of law. Both Judge Summe and Judge Ward did an extensive analysis and came to the same conclusion.”
Boone County Public Library district officials declined to comment based on the pending lawsuit there.
The Campbell County case will get appealed, Mando said. Attorneys for the Kenton County Public Library haven’t decided on an appeal.
The cases could get rolled into one case on appeal, Mando said.
He said he foresees library supporters lobbying the General Assembly to clean up the statutes.
State Rep. Adam Koenig, R-Erlanger, said he’s already fielded calls from library trustees asking for help. The General Assembly isn’t scheduled to convene until January 2014. Koenig said he expects someone will propose legislation in 2014.
“It’s on my radar,” Koenig said. “We’re not back in session for quite some time. Even so, the legislature tries not to get involved in court cases like that until they’re decided.”