Lower Merion School District, in Montgomery County in southeastern PA, approved a millage rate of 27.3965 for the 2016-17 school year. That was up 1.1642 mills, or 4.4%, over last year’s millage rate of 26.2321. Based on Department of Education data on real estate tax rates, Lower Merion raised taxes each year from 2011-12 through 2016-17. Lower Merion is one of the top spenders in the state (its 2014-15 total expenditure per-pupil was $28,172; the PA state average was $15,854).
It is also one of the wealthiest districts in the state. Measured by the market value/personal income aid ratio calculated by the Department, Lower Merion was tied with 20 other districts in the state at 0.1500 (the lower the ratio, the wealthier the district). It ranked third in the state for market value of property per pupil ($1.3 million per) and second for personal income per pupil ($715,937).
But this year’s tax increase, which was allowed to exceed the District’s Act 1 index thanks to an exception granted by the Department has now been partially rescinded by a Judge as a result of a lawsuit brought by a resident as part of a class action. If the decision is upheld, the District would be allowed to boost its tax rate to its Act 1 index (0.6295, or 2.4%) but would have to forego the 0.5347 permitted through the exception. The lawsuit argued that the District had been building up a sizeable surplus (the District’s business manager stated that the district has $50-60 million “in the bank”) while it was predicting it was going to have annual shortfalls. Sounds similar to the situation in Pittsburgh that we wrote about earlier this year and was highlighted in an audit by the Auditor General.
The District plans to file an appeal on the decision.
