Kentucky lawmakers reached a deal Monday in a conference committee on legislation addressing issues with special taxing districts.
The committee adopted a new proposal that would require special districts to present their annual budgets or any new fee increases to their local fiscal court. But the compromise on House Bill 1 does not allow the fiscal court veto or approval powers of the special district's actions, as Senate Republicans had recently suggested.
Special taxing districts are usually sewer districts, library boards or other quasi-governmental public service entities. In November, the auditor's office released a report that said half of Kentucky's special taxing districts aren't following rules on filing budgets or submitting audits. But those districts, the report said, spend more money than Kentucky spends on Medicaid or infrastructure.
The compromise is supported by Republican state Sen. Damon Thayer and Auditor Adam Edelen, as well as many Democratic lawmakers. Edelen says the change will help transparency of the districts.