January 25, 2023 - Harrisburg, PA
Auditor General Timothy L. DeFoor released an audit of 12 school districts from across the Commonwealth that uncovers a legal standard practice where districts are raising local property taxes while holding millions of dollars in their General Funds."These districts represent a cross-section of Pennsylvania - from wealthier to poorer tax bases and urban, suburban and rural communities," DeFoor said. "These districts have found a way to use the law to their advantage so they could always raise property taxes. It's basically a 'shell game' that allowed these 12 school districts to collectively raise taxes 37 times during the four years we reviewed, which increased their respective General Fund accounts to $390 million.The districts were selected based on criterion that included a district with approved referendum exceptions and substantial Government Fund balances for fiscal years ending 2018 through 2021. They include: Abington School District, Montgomery County; Bethlehem Area School District, Northampton and Lehigh counties; Cannon-McMillian School District, Washington County; Hempfield School District, Lancaster County; Lower Merion School District, Montgomery County; Neshaminy School District, Bucks County; North Allegheny School District, Allegheny County; Northampton Area School District, Northampton County; North Penn School District, Montgomery County; Penn Manor School District, Lancaster County; and School District of Lancaster, Lancaster County; West Chester Area School District, Chester and Delaware counties.The audit evaluated whether each district appropriately used the Pennsylvania Department of Education (PDE) referendum exception method to raise local taxes; and whether each district ensured its General Fund balances were properly designated as committed, assigned, and used in a timely manner for intended purposes.Speakers Included:Auditor General Timothy L. DeFoorSenior Audit Manager, Peggy Morningstar
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