The Revenue Department began collecting debt for universities in 2008, but this year the department shifted all of its attention on tax debt — saying that the state collects 39 times more revenue per fiscal year by doing so. It also argues hiring and maintaining debt collectors for universities has proven exceedingly challenging.
Decide if you would rather have us to tell you to do it via statutory directive or whether you'd like to have the latitude of having a third party assist you in doing it.Sen. David Givens
Since 2023, the number of university collectors on staff has fallen by nearly half.
Tom Miller, commissioner of the Department of Revenue, said zeroing in on taxes makes more sense.
"We made a decision to collect the maximum taxes we could for the Commonwealth of Kentucky, which I believe is a very good decision," he said.
But lawmakers appeared frustrated with that choice in a Wednesday hearing, suggesting the department is better positioned to collect university debts than the schools themselves. Sen. David Givens hinted that, if the department doesn't resume collection of bills owed to universities, it could soon be forced to do so.
"Put your thinking cap on between now and the start of session and decide if you would rather have us to tell you to do it via statutory directive, or whether you'd like to have the latitude of having a third party assist you in doing it," Given said. "And just come back to us with a recommendation."
An attorney for the department expressed doubts about a third party's ability to do the work as well, and pointed to potential legal complications.