PHILADELPHIA (KYW Newsradio) — The Pennsylvania auditor general is calling on the state legislature to close a loophole that allows school districts to raise taxes without getting voter approval.
Pennsylvania law says if school districts need to raise taxes over a certain rate, they need to put it before voters in the district.
But auditor general Timothy DeFoor says his office looked at 12 school districts across the state who got an exemption, and he says they found some disturbing trends, including what he calls a shell game.
“When they had plenty of money in those funds, they would then take those funds elsewhere,” he said. “For example, they would move them into capital projects, even though they had already budgeted enough money for capital projects.”
The 12 school districts include Neshaminy, North Penn, Lower Merion, Abington, and West Chester Area School District.
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DeFoor says it’s not illegal, but it’s also not transparent. He says districts tell his office they need a cushion because they need to finalize their budget before they know how much money they’re getting from the state.
DeFoor is calling on the legislature and the department of education to change how they grant the exemptions, for example, requiring districts to exhaust previous surplus funds before they can qualify for an exemption.
DeFoor says districts told his office they need a cushion because they have to have their budgets done before they know how much money they’re getting from the state.
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Among the recommended changes: Move the date school districts are required to finalize their budgets, and require districts to exhaust surplus funds before granting the exemption.
Lower Merion School District recently returned $ 27 million to taxpayers after a years-long battle over a lawsuit alleging similar tactics in 2016.
The West Chester Area School District released a statement Wednesday, saying it holds regular meetings to share budget and fiscal decisions. And it works to maintain “an exceptional level of education while maintaining the lowest tax rate in Chester and Delaware Counties.