Pressures from decreasing state revenue and Act 319, a 1974 law which gives preferential assessments to agricultural land and shifts the tax burden to other properties, is driving taxpayers in the Octorara Area School District to a breaking point, school board members told the community during their March 14 meeting.
“It appears to me our legislators are out to break us and they’re doing a damn good job,” said board member Bob Hume. “We need the people in the Octorara area to make some noise.”
Discouraged that legislative proposals to as Hume puts it, “even the playing field” for all taxpayers are sitting in committee, board members asked Business Manager Dan Carsley to explain the impact Act 319 has on the district.
According to Carsley, 226 out of the 1,407 taxable parcels in the Lancaster County portion of the district are in Act 319, also known as Clean and Green. In Chester County, 812 out of 5,463 taxable parcels are in Clean and Green. These properties are assessed at a lower rate.
This preferential assessment shifts $1.6 million in Lancaster County property values to other taxpayers, and $3.8 million in Chester County to other taxpayers.
In bottom line figures, Carsley said, each property owner in Lancaster County pays an average of $1,387 per year more because of Act 319. In Chester County, property owners not in Clean and Green pay an additional $825 more annually.
Carsley said the district is doing all it can to save money through initiatives such as joint purchasing and electric choice. However, state funding cuts, rising health care and retirement costs and charter school enrollment cause the district millage rates to be among the highest in the region.
Beginning in 2006 property owners who signed up for Act 1 have had about $270 annually trimmed from their property tax bills from state gambling revenue. However, Carsley said property tax bills have also risen by an average of $97 annually over the past five years in Lancaster County, and by $135 annually over the same time period in Chester County.
“It’s the system based on property taxes,“ said Superintendent Tom Newcome.
The superintendent is holding a series of town meetings this spring to discuss school funding and also how potential budget cuts may affect educational programming. The next parent meeting is set for 7 p.m. April 21 in the middle school multipurpose room, and the next town hall meeting will be at 7 p.m. April 26 in the same location.
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