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State Rep. Steve Davisson (R-Salem) recently voted in support of a House plan that would return $550 million to local governments.

House Bill 1110 would immediately infuse $440 million into local government budgets free of restrictions. If enacted, the following counties would receive one-time payments in the following amounts:

  • Washington County would receive about $1.8 million;
  • Orange County would receive about $451 thousand;
  • Lawrence County would receive about $2 million;
  • Jackson County would receive about $2.6 million;
  • Clark County would receive about $10.6 million; and
  • Harrison County would receive about $768,000.

The bill would also reduce the threshold for supplemental distributions from 50 to 15 percent, allowing local governments to receive an additional $110 million over the next four years.

Davisson said these funds could be used by local governments to provide much-needed services, like local infrastructure or public safety.

“Local governments can best determine where to invest money in their communities to address specific issues or pay for projects that affect their residents,” Davisson said.

These funds were collected from the Local Option Income Tax Revenue held in reserve by the state in trust accounts for each county. Davisson said the bill does not raise taxes or create new debt since the funds already exist in trust accounts.

Davisson said that he will closely monitor any changes to House Bill 1110 in the Senate.