A new audit suggests many Pennsylvania school districts may be overtaxing residents.
According to a report from Auditor General Tim DeFoor, some districts are raising taxes while stockpiling funding in their reserves.
The audit examined 12 districts, including 3 in our area, Hempfield, Canon-McMillan, and North Allegheny. They were targeted for the audit
“School districts are flush with cash even as they promulgate a narrative of underfunding,” said Senior Vice President of the Commonwealth Foundation Nathan Benefield. “Many districts have been stockpiling taxpayer funds for years—increasing their reserve funds far above what’s necessary for a rainy day.”
The reviews found they had raised taxes despite having sufficient funds.
“The unused money then sits in the bank for a rainy day that may never come and taxpayers never get the opportunity to vote on a tax increase,” said DeFoor. “There’s a loophole in the law that makes all this legal.”
School districts, by law, can only raise taxes without voter approval if their fund balances fall below a certain threshold.
But the audit finds that districts are strategically transferring and “committing” funds to avoid the restriction and raise taxes despite large reserve funds.
The audit confirms that many school districts are not only adequately, but excessively funded.
“The state should move to protect Pennsylvania taxpayers from unnecessary tax increases and direct funding towards students—including those seeking alternatives to their neighborhood school. Families, not school buildings, need more resources,” said DeFoor.