HB 2886

Overview

This bill amends the Taxpayer Relief Act to establish public referendum requirements for school districts seeking to increase certain taxes beyond a specific index rate. The legislation applies to the 2006-2007 fiscal year and modifies existing procedures regarding tax rate submissions, departmental review timelines, and court petitions for additional funding. It specifically addresses districts that did not participate in the former Homeowner Tax Relief Act by allowing them to petition courts for necessary budget balancing if index limits are insufficient.

Key Provisions

• Establishes a maximum tax rate increase index for school districts; any proposed increase exceeding this index requires voter approval via referendum.
• Requires school districts submitting preliminary budgets with tax increases to provide information to the Department of Education no later than 85 days prior to the preceding election.
• Mandates that the Department of Education notify school districts within ten days of receipt regarding whether a proposed tax rate increase exceeds the index, requiring reduction or referendum approval if it does.
• Extends compliance deadlines for sections 311 and subsection (e) by 92 days for specific districts, with preliminary budget adoption occurring ten days prior to the standard deadline.
• Allows school districts that previously received exceptions under the Homeowner Tax Relief Act to apply for additional exceptions under new subsections if their approved dollar amounts differ between acts.
• Applies referendum requirements to a school district's share of payments to the Public School Employees' Retirement System if estimated payment increases exceed the index.
• Grants authority to boards of school directors that did not participate in the Homeowner Tax Relief Act to petition the court of common pleas for additional tax rate increases to balance budgets, subject to clear and convincing evidence of insufficiency.