As reported last week, 13 school districts in Allegheny County were granted exceptions to their Act 1 budgetary index for the coming 2014-15 fiscal year.  Since the Act has been in force on the school budgetary process (FY 2007-08), the highpoint in the County, in terms of number of districts applying for exceptions, came in 2012-13 when 15 districts applied and were granted.  The 2009-10 fiscal year saw only one district (Mt. Lebanon) apply for and receive an exception.

Each year school districts are told of their Act 1 index.  The district can increase taxes up to this index without any restraint, year over year.  If they plan on going above the index, they can apply for one of the exceptions (until 2012-13 there were ten, since then there are three) and exceed the index with the permission of the state, or, in rare instances, exceed the index by asking the voters of the school district to approve the increase.  We wrote earlier this year that voter referenda on Act 1 tax increases have occurred in seven districts since 2007-08, with none in Allegheny County.

In the eight fiscal years Act 1 exceptions have been granted, the Allegheny County districts that have applied been granted the most (in terms of years of approval) are Mt. Lebanon (exceptions in 7 of 8 years) and Avonworth, North Allegheny, Pine-Richland, and South Fayette (exceptions in 5 of 8 years).

Of course, just being granted an exception does not necessarily mean it will be used to levy property taxes above what would be allowed by the index.  Just over $1 billion in exceptions have been granted but $300 million have actually been used by districts.