FAQ
FREQUENTLY ASKED QUESTIONS
FREQUENTLY ASKED QUESTIONS
The term "nickel tax" has been used by the Kentucky Department of Education (KDE) for decades. While it's called a five-cent tax, the actual rate is higher. That's because:
The tax only applies to real estate and personal property and not to vehicles.
It is rare that 100% of what is owed is collected.
Still, school districts are required to transfer the full amount that would be raised by five cents per $100 of property and vehicle value into a building fund, no matter how much is actually collected. 5.9 cents is what was provided to the district from KDE.
Auburn School is too old to qualify for state-approved renovations. With the construction nickel, replacing Auburn can occur in about 3 years. Without it, it would be delayed by an additional 7–8 years. This delay will also:
Limit improvements at other schools across the county.
Likely force redistricting to manage growth in student enrollment.
The redistricting done this past spring will only help Auburn for about 3 more years. After that, the school will again be over capacity.
New homes are being built in both Auburn and Chandlers, which will bring more students.
Auburn is already tight, with a capacity of 712 students in classrooms smaller than current state standards.
A new building with space for around 850 students would help keep up with growth. It could also better accommodate enrollment beyond capacity for a longer period of time than the existing smaller building can.
The district may even need to build on to the new building, or construct an additional facility in Auburn later. That would also be difficult, however, or even impossible without the construction nickel in place.
4. WHAT'S WRONG WITH REDISTRICTING IF THERE IS SPACE AT OTHER SCHOOLS?
It seems simple: just move students to schools that have space. But it's more complicated than that.
Some students would go from a 5–10 minute car ride to a 15–20 minute one, and much longer on a bus.
This would increase district transportation costs and might require more bus drivers.
Click this link and you can see how our road locations and current school zones could affect travel time.
5. WILL THIS RAISE MY PROPERTY TAXES?
Yes, but the monthly increase for most Logan County homeowners is small. You may be surprised how little your taxes would go up. Click here for a tax calculator to find your exact increase as well as some examples based on PVA assessed values. Approximately 56% of homeowners in Logan County would pay $1 or less per week, or about 14 cents per day.
6. WILL MY TAX RATE JUST KEEP GOING UP?
No. Kentucky law limits how much revenue a school district can collect each year.
Districts can only increase revenue by 4% per year without a public vote.
Even if property values go up 6%, the district can still only collect 4% more in total, not 4% more from each person.
In 2024, for example, the district accepted the 4% revenue increase but still lowered the tax rate.
No new nickel taxes or general fund tax increases are planned.
7. HOW DOES OUR SCHOOL TAX COMPARE TO OTHER DISTRICTS?
Logan County’s school taxes are lower than most districts in Kentucky. If our rate matched the state average, a typical homeowner would pay about $265 more per year, or around 40% higher than they currently do.
8. HOW MUCH WILL THIS GENERATE FOR THE SCHOOL SYSTEM?
This tax will bring in over $1.1 million per year locally.
The state typically matches 82¢ for every $1 raised—about $920,000 more (termed "equalization").
Total: $2 million+ annually for school construction, repairs, renovations, and maintenance.
It also increases bonding capacity for future necessary projects at all schools.
9. WILL THIS BE USED FOR ANYTHING BESIDES CONSTRUCTION?
No. The “construction nickel” and state match are restricted, and can only be used forl the following at all facilities:
Building projects
Repairs
Renovations
Maintenance
Right now, the district spends $500K–$700K per year from its general fund to cover these costs. This tax would take that burden off the general fund and help better ensure competitive wages for teachers and staff.
10. DOES THIS ONLY BENEFIT AUBURN?
No. Auburn is the first priority, but the district can utilize this money for improvements in all schools. Because of the age of our buildings (an average of well over 30 years), we are seeing end-of-life expenses coming up at all of our facilities. Projects the district hopes to fund in the next 3–5 years include:
Auburn replacement – $35 million
Chandlers roof – $300K
Chandlers HVAC – $200K
District office HVAC – $50K
Adairville awning – $350K
Adairville classroom cabinets – $250K
Olmstead gym renovation or replacement – $1M–$4M
LCHS gym HVAC – $250K
11. HAS THE DISTRICT CONSIDERED BUILDING A MIDDLE SCHOOL?
Yes, but it’s not allowed under state rules right now.
The state requires schools to stay at 85% capacity. Moving middle school students (even 2 grade levels) would leave our K-8 schools too empty.
Only 33% of students are in middle school grades.
Auburn is too old for state-approved renovations or additions, so it must be replaced first.
A new middle school would also be very expensive:
Land: 50 acres
Building: ~$55 million
Staffing: Additional costs for teachers, administrators, and support staff
It’s not financially responsible or even legally possible.
12. WHY NOT JUST RENOVATE OR ADD ON TO AUBURN?
The current Auburn building is too old to renovate or add onto under state rules.
The district already owns 30 acres in Auburn for a new school, which will provide more space and meet modern standards.
13. WHY DIDN'T THE DISTRICT PLAN AHEAD?
We did. School districts are required to create a District Facilities Plan (DFP) every four years. On the 2019 plan and the 2023 update, Auburn was listed as a priority project. However, due to the passage of Senate Bill 1 (SB1) in 2019, districts were required to comply with laws mandating secure front entrances. Logan County spent several million dollars over the past few years upgrading the entrances at all schools. LCHS was the last school to be updated. As costs and priorities were evaluated, it made the most sense economically to move forward at the same time with renovations and improvements to classrooms, the kitchen, science and CTE labs, the cafeteria, and construction of an auditorium, which was based on input from a community survey.
Auburn is the next priority.
14. ARE THERE OTHER SOURCES OF FUNDING?
Not for building replacement right now.
The district recently received a $9.95 million grant for the Career & Technical Center (CTC), $2 million from the Kentucky Legislature for Career & Technical Education, and over $100,000 in grant funding for mental health support and academic programs.
The state may help with construction, but are more likely to do so when districts also invest local funds (i.e., “skin in the game”).
The state provides "equalization," which is matching funds. These "nickel" taxes provide this free money to the district.
15. WHY HAS THE DISTRICT USED FUNDS FOR ATHLETIC FACILITIES AND BOUGHT A VIDEO BOARD?
Logan County Schools support a wide range of activities, and participation is high. The indoor facility serves:
Baseball, softball, football, soccer, wrestling, cheer, archery, track, cross country, JROTC, PE, and band.
Athletics are primarily self-sustaining financially. The softball and baseball facilities were completely funded by boosters. Booster organizations raise thousands each year to pay for travel, uniforms, equipment, and other expenses. The video board was 100% funded by local business sponsors. The district spends approximately 1.9% of its annual budget on athletics.
While not every student plays sports, athletics is the largest extracurricular group. A few examples of some notable areas that the district also invests in includes:
Agriculture and other Career and Technical Education programs
CTC career pathways
Clubs and organizations
Classroom instruction and college/career readiness
16. HAS THIS TAX BEEN USED BEFORE?
Yes. The last construction nickel was passed in 2015 to build the CTC.
The CTC serves more than 600 students per year in 10 career paths.
In the spring of 2025, the district received a $9.95 million grant to add diesel technology and plumbing programs to meet the high-demand of the commumnity and region.
17. WILL THE TAX GO AWAY AT SOME POINT?
The Auburn project will be financed through 20-year tax-exempt bonds. While the district can plan for the next several years, it’s impossible to predict all future needs.
As Logan County grows, demands on school facilities will continue. The Board of Education can rescind the tax in the future if it determines the funds are no longer needed, but making that determination now would be premature. Investing in strong infrastructure ensures students have access to high-quality learning environments for years to come.
18. WHY WAS THE BOARD ABLE TO MAKE THIS DECISION WITHOUT A PUBLIC VOTE?
School boards are elected to make decisions on behalf of their communities, including setting the annual tax rate.
This process is not new: all Kentucky school districts follow the same rules.
With school funding at historic lows, local boards must seize opportunities to protect the resources needed to maintain facilities, serve students, and retain high-quality staff.
19. IF YOU BUILD A NEW AUBURN SCHOOL, WON’T IT JUST BE FULL RIGHT AWAY?
No. A new Auburn school would be larger and more flexible than the current facility.
The current Auburn school has a capacity of 712 students in 70,900 square feet.
A new building for 700 students, following KDE building guidelines, would be 91,000 square feet, with larger classrooms and more support spaces.
Typical classrooms at Auburn are in the 500-600 square foot range. Minimum square foot requirements for new construction is 750-800 square feet per classroom.
The district anticipates building for 800-850 students, with room for expansion.
In the long term, the district could also consider adding onto the new school, or even opening a second Auburn facility for some grade levels on the current site.
20. DOES SIGNING THE PETITION JUST PUT THIS TO A PUBLIC VOTE?
It does, but here are some things that you might want to consider:
Representation already exists: voters elected board members to make decisions based on input from constituents. It has been apparent for several years that the citizens of Logan support adequate funding to ensure safe and modern facilities for our students, and that is why they took this necessary action.
Options: the district can choose to one of three things: drop it completely; hold an expensive special election that the district will have to pay for, or wait until the next general election (November 3, 2026).
Delays in construction: If the Board chooses to add this to the November 3, 2026 ballot, it will result in a one year delay in replacing Auburn School.
Loss of funds: The district, in the meantime, will lose the opportunity to gain nearly $3 million for one year of funding: $1,121,789 in tax revenue and $1,839,734 in matching state funds (2 year budget cycle).
21. DO PROCEEDS FROM THE KENTUCKY LOTTERY GO TO SCHOOL DISTRICTS?
No. In Kentucky, proceeds from the state lottery are primarily dedicated to funding student financial aid programs for higher education (education beyond high school). These funds support various scholarships and grants administered by the Kentucky Higher Education Assistance Authority (KHEAA).