Business manager outlines Act 1 index, shows 6.3% allowable millage increase and estimated revenue

Les Paul Worstkoe, the district business manager, briefed the Greater Johnstown School District board on Jan. 6 on Pennsylvania’s Act 1 index and what a 6.3% index would mean for local millage and revenue.

Worstkoe explained that the Act 1 index, set annually by the state, limits how much a school district may raise property-tax millage without special approval. Using the district’s prior-year millage of 48.62, Worstkoe calculated an allowable millage increase of 3.317265 mills (an index expressed as a decimal, 0.063), bringing a hypothetical maximum mill rate to about 51.68306 mills.

Worstkoe said that at an 86% collection rate and if the district levied the full indexed increase, the district could expect approximately $658,000 in additional local revenue. He noted the county’s property-assessment data are old — he referenced a 75-year-old assessment cycle in Cambria County — and advised residents to consult their tax statements for assessed values.

Using examples he provided, Worstkoe said a $50,000 assessed property would see a tax increase of about $153.15 annually under a full 6.3% mills increase; he also presented a smaller 1.5-mill illustrative increase that would produce an estimated $472,000 in revenue and a lower per-household impact.

Worstkoe framed Act 1 as tax-relief legislation that balances predictability for taxpayers with flexibility for districts that face extraordinary costs; he said districts may apply to exceed the index for specified reasons and that six districts statewide had received such approvals in the previous year. Board members requested further discussion of millage options at a later meeting.

All numerical examples and the index calculation were presented by the business manager during his report to the board.