MERCER COUNTY School boards rush to beat Act 72 start, avoid tax-raise levy

Acting now will avoid having to persuade voters to approve tax increases.
By HAROLD GWIN
VINDICATOR SHARON BUREAU
SHARON, Pa. -- School districts across Pennsylvania are scrambling to authorize borrowing for capital improvement projects before Friday.
That's the date that Act 72, which gives taxpayers some control over school property tax increases for the first time, takes effect.
School districts seeking to borrow money for expansive capital improvement projects that will require tax increases after that date will have to take their request for a tax increase to the voters first.
Four Mercer County school districts scheduled special meetings this week to consider authorizing borrowing before Act 72 takes effect. That's not uncommon across the commonwealth, according to the Pennsylvania School Boards Association.
Districts that have been looking at projects are being forced to make decisions now unless they want to wait for voters to give them permission to borrow funds needed to do the work, said Tim Allwein, PSBA spokesman.
Dr. William Gathers, superintendent of the Mercer Area School District, said his board will meet at 6 tonight to consider borrowing up to $10 million for renovation of the district's elementary school that houses 800 pupils.
The building was erected in 1958 and an addition was put on in 1984, but the building core wasn't really touched in that expansion, Gathers said.
Act 72 rush
The building is nearing 50 years old and renovations will be needed within the next few years, he said, adding that the funding is being considered now because of Act 72.
The board will have a public discussion session first and could decide not to proceed with any borrowing at this time, he said.
The Hermitage, Sharon City and Farrell Area school boards are having similar sessions this week.
Hermitage, meeting at 6:30 p.m. Wednesday, is looking to borrow up to $11 million for building improvements hinging around the possible closing of its Hermitage Elementary and Middle schools.
Closing them would require some expansion and improvements in other buildings to house those pupils.
Sharon is meeting at 6:30 p.m. Thursday to look at borrowing up to $12 million for improvements to the Case Avenue Elementary School and the Educational Services Center, the district's central administration building.
Farrell is meeting at 6 p.m. Wednesday to consider borrowing up to $25 million for needed improvements to both its elementary and junior-senior high school buildings.
None of the four districts have firm plans in place. Authorizing the borrowing at this point doesn't commit them to spending or borrowing anything, district officials have said.
Allwein said boards authorizing funding now must have an architect's estimation of the project cost.
Window of opportunity
School boards will have a window between Saturday and June 30, when they will still be able to incur debt and raise taxes to pay for it without a referendum, but they will have to get permission from the state Department of Education to do it, Allwein said.
After June 30, any debt that will require a tax increase to pay it off must first be approved by the district's voters, Allwein said.
The law requires a district to put a referendum on a spring primary ballot outlining the projected cost and proposed tax increase to pay for it.
Districts will have limited ability to raise property taxes in the future but no more than the current rate of inflation.