Monday, April 23, 2007
Department of Education Accepts Exceptions
Our last blog entry noted the breakout of referendum questions on Act 1 that are coming up next month. Those referendum questions will decide whether taxpayers in a school district want to swap a higher income tax rate for a cut on their school property tax bill.
That’s just one part of Act 1—there is also an expansion of the rent rebate program, gaming money, and taxpayer control of school taxes and spending by being able to vote on taxes in they exceed the district’s index.
That does not mean that schools can’t increase taxes as they can do it at a rate lower than the index. Or, if the situation justifies it, they can apply for one or more referendum exceptions that allow the district to exceed the index without going to the voters.
For the 2007-08 school year, 210 districts, or 42 percent statewide, were granted exceptions by the Department of Education. The most common reason for the exception (188 out of the 644 total) was for retirement contributions. Other most common reasons were special education expenditures (144) and grandfathered school construction debt (104).
In Allegheny County, ten districts (23 percent) applied for and were granted referendum exceptions for the upcoming school year.
With built in referendum exceptions and the ability for districts to increase taxes up to the index, it remains to be seen whether year-over-year school spending will eat away at the yet to be delivered savings.
That’s just one part of Act 1—there is also an expansion of the rent rebate program, gaming money, and taxpayer control of school taxes and spending by being able to vote on taxes in they exceed the district’s index.
That does not mean that schools can’t increase taxes as they can do it at a rate lower than the index. Or, if the situation justifies it, they can apply for one or more referendum exceptions that allow the district to exceed the index without going to the voters.
For the 2007-08 school year, 210 districts, or 42 percent statewide, were granted exceptions by the Department of Education. The most common reason for the exception (188 out of the 644 total) was for retirement contributions. Other most common reasons were special education expenditures (144) and grandfathered school construction debt (104).
In Allegheny County, ten districts (23 percent) applied for and were granted referendum exceptions for the upcoming school year.
With built in referendum exceptions and the ability for districts to increase taxes up to the index, it remains to be seen whether year-over-year school spending will eat away at the yet to be delivered savings.
