District Confusion Could Cause “Wind-Fails”

This week’s Brief pointed out the rather complex process under which the County, municipalities, and school districts will have to adjust their millage rates when the 2013 reassessment is made official. The Brief points out that the old days of taking 5% above the revenue collected the year before the reassessment are no more.

So when the business manager of a south hills school district noted that "revenues in the budget were based on the county holding a countywide reassessment this year in which school districts and municipalities would have been permitted to keep a 5 percent windfall" there is going to have to be a major undertaking of school officials, solicitors, and others to ensure that the new legal obligations are being followed. The officials of the District might be wary of budgeting anything given the resistance of County leaders to move forward with a reassessment.

As a result of changes to the law in recent years, there is no ability to take a 5% windfall: the County and municipalities can vote to get 5% after they establish a revenue neutral rate and school districts are limited to the confines of their Act 1 index.