So, there is a bit of uncertainty on education spending this week with the state outlining areas where districts can spend proposed new money (and wanting the details by May 15th) and the reaction to that there will be this one certainty: for the 10th school year (running on a fiscal year from July to June) district tax increases will be subject to the Act 1 index.
The index represents the ceiling to which millage rates can go: of course, the ceiling can be evaded if the district secures an exception from the Department of Education (common) or places a question on the ballot in front of the voters (rare). Our 2014 report looked at the impact of Act 1 in Allegheny County, examining all school districts except Clairton (a split millage rate) and Pittsburgh (calendar year). The state’s Department of Education has historical data on all districts.
This coming year the average Act 1 index in 2.4% for the 41 districts. Ten districts have an index of 1.9%, which means they could boost their millage that much without an exception or a referendum. A 19% increase means different things in those districts, of course. In Montour and Quaker Valley millage rates would stay under 18 while in Mt. Lebanon and Upper St. Clair rates would be 23.5 mills and 22.6 mills, respectively.
McKeesport, South Allegheny, Sto-Rox, and Duquesne have an Act 1 index of around 3%.
The highest average was in 2008-09 when it was 5.4%. The lowest average index of 1.8% was in 2011-12. It has remained around 2 to 2.5% in the years since.
